Will I be committing benefit fraud????

[Essex Don]

Hi all,

 

I am currently on JSA contribution based and will be soon recieveing Interest Mortgage support and Council Tax benefit.

 

I am thinking of renting out some rooms in my home to give me more of an income and help me pay the remainder of my bills.

 

Lets say for instance I rent out 3 rooms for a total of £980 each month and then the mortgage interest support is paying my mortgage do I need to declare this and also will I still be allowed to claim mortgage interest support?

 

Thanks for your advice.

[Simon7685]

To put it into perspective, you are receiving JSA C, which when it runs out will convert to JSA IB. You will be getting your mortgage interest paid and receive full Council Tax Benefit.

 

You are getting these benefits because you are not working and do not have an income. So if you receive £980, this will be classed as income, you will be entitled to continue receiving JSA C until it runs out but I would doubt you would be eligable for mortgage interest payments or Council Tax Benefit. Also when your JSA C ends it is doubtfull you would be entitled to JSA Income Based.

 

If you are renting out rooms for £980 a month you have an income. Technically it could be argued that you have a job as a hotelier and as such may not be entitled to your JSA C either.

 

The money you receive in the form of JSA C albeit small, is to provide for your day to day living costs and that includes all your household bills, sorry but that is how it is.

[andydd]

Yep..You will only be entitled to JSA CB, not JSA IB nor council tax benefit nor SMI mortgage interest, also at £980 you will be well above the limit you can earn tax free for room renting so in theory you should inform the tax office and pay tax on the income.

 

Depending on how much SMI you get, you may well be better off not claiming any benefits when your JSA CB ends and just rely on the rental income.

 

Of course claiming both would be very naughty and this site could never recommend that !...Also with 3 rooms rented would mean quite a few extra people coming n going to your property and a high risk of getting nabbed.

 

Andy

[Essex Don]

Hi thanks for the replies,

 

I think I will just sign off benefits and survive on the rental income - I just wanted to know if I would be doing anything wrong and it seems i would so I wont be doing that as its illegal.

 

Cheers for your advice.

[RaeUK]

Good decision Essex Don. It might be worth your while chatting to your housing benefit office about it just in case. Rememebr the rents coming in are turnover not profit / income...

Best wishes.

Rae.

[Essex Don]

Good decision Essex Don. It might be worth your while chatting to your housing benefit office about it just in case. Rememebr the rents coming in are turnover not profit / income...

Best wishes.

Rae.

 

I think i will just be honest and upfront if I do end up renting rooms and then let them tell me what I need to do, that way Im not commiting a crime etc.

 

thanks

[impecunious]

Check out the Rent a Room scheme - declare your income and you should be entitled to first £4-5K/year tax free.

 

Definitely keep it legit - but don't forget to check out your mortgage agreement - you may not be allowed to "sub-let"! Advise Council Tax too - nothing worse than ending up in the brown stuff!

 

 

Impecunious!

[Essex Don]

Check out the Rent a Room scheme - declare your income and you should be entitled to first £4-5K/year tax free.

 

Definitely keep it legit - but don't forget to check out your mortgage agreement - you may not be allowed to "sub-let"! Advise Council Tax too - nothing worse than ending up in the brown stuff!

 

 

Impecunious!

 

Hi thanks for the info, is there anywhere online I can find more info on the rent a room scheme?

[ErikaPNP]

Info on the rent a room scheme here