Rent-a-Room

[Another John]

A 54yr old chap I know who's got learning difficulties (to put it mildly) has decided to allow some woman he's met to move into his flat. I've been trying my best to put him off letting her in because I believe that she's taking advantage of his disability but his mind is made up so all I can do is to try to safeguard his property and his income. He gets PAYE income as a baker and I understand that he also gets working tax credits. Supposedly, this evil cow is going to give him some rent, but I've told him not to bank on it.

1. As the trollop will effectively be co-habiting as his girlfriend, will he be eligible for Rent-a-Room relief?
2. Would any income he receives under the Rent-a-Room scheme affect his eligibility for working tax credits?

Thank you

[maths]

"Evil cow"; "trollop".........so you don't like her??

Working tax credits are I believe means tested and hence any rental income may affect entitlement.

Presumably the single persons 25% discount re council tax will be lost.

Rent a room relief should apply.

There are cases where one person (be it woman or man) has moved in to another's house and tried to take advantages including claiming the property post death and/or engineering a change in a will. In addition, once ensconced the "mover-in" has then invited another person (ie the real girlfriend/boyfriend) to alos move in.

I understand your concerns but may be all is well and she's an honourable lady.

Has he any relatives who may be able to help guide him?

This is of course a tax website so take my non-tax "expert" guidance with one hell of a pinch of salt!!

[Another John]

Maths - as always, you're an absolute gentleman and I really appreciate all the advice (including the pinch-of salt bits) - and I hadn't even thought about the Council Tax!

Regarding family members helping, unfortunately, this poor chap has lost both his parents and he recently had to go to the police to get his brother nicked for conning him out of £1000.

Obviously I really hope that the old bitch turns out not to be one devious, manipulating skank and, instead, she's a reincarnation of Mother Teresa who's mission in life is to care for this poor soul. However, until she's proven herself in that way, I'm on her case and I'll make sure she signs a Lodger Rental Agreement to keep her as an 'excluded occupier'.