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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5115
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My daughter is a student. She lives in our house with 2 other

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My daughter is a student. She lives in our house with 2 other students using rent a room. Her income from the 2 rooms is over the £4250 allowance but her total income is less than the personal tax allowance. She has no other earnings. Does she need to inform the inland revenue.
Hello and welcome to the site. Thank you for your question.

As your daughter is in receipt of rental income of £2,500 or more after deducting allowable expenses, she will have to fill in a self assessment tax return.

If her total income from all sources remains below the personal allowance of £10,600 there will be no tax payable.

More information on check if you need to fill in a self assessment tax return can be found here. Your daughter would have to register for self assessment. Information on how to register can also be found here

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.
Thank you for your reply. As she has friends in her 2 rooms for tax purposes as a Rent a Room she is not allowed to claim expenses as it is not a tenancy agreement. She can have £4250 tax free but the remainder brings her lower than her personal allowance which is £ 10000 for the tax year 20-4 - 2015 so as there will be no tax to pay does she need to inform the inland revenue.
Thank you for your reply.

She would still have to complete the tax return and show the income from property by completing supplementary pages SA105 - UK property, not withstanding the fact there may be no tax payable as total income is below personal allowances.

This way, she can't be held to account for non disclosure of income.

I hope this is helpful. and other Tax Specialists are ready to help you