We invited my 80yo MIL to come and live with us as her house was getting too much for her.  We all get on great and always have, so I envisage no problems on that front.  She has all her marbles, and is really quite fit and healthy for her age.  She has insisted she wants to pay "board and lodgings", which is great so doesn't make a negative impact on the household finances.  But this creates a small issue which I don't have a clue about.  Will MIL's contribution have a impact on my tax situation? ie, is this contribution classed as Income?
Your sage words will be appreciated.

Depending on your personal circumstances, there are a number of issues, including a tax-free £7500 per year income allowance. Well worth reading this:-

https://www.gov.uk/government/publications/letting-rooms-in-your-home-a-guide-for-resident-landlords/letting-rooms-in-your-home-a-guide-for-resident-landlords

and this:-

https://www.gov.uk/rent-room-in-your-home

and this:-

https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223-self-assessment-helpsheet/hs223-rent-a-room-scheme-2021

If you want a definitive answer then it's probably best to ask a  proper accountant. It may mean spending a few quid, but a whole lot cheaper than falling foul of HMRC.

Don't bother telling anyone... How would they know?
In any case she's only paying her expenses.

That what we did, 30 years ago..

I saw Trev's post just after he posted it, and the first response that came into my head was "not if you don't tell 'em" but then I thought that, as a mod, I shouldn't be advocating such things, although it's quite obvious to me that that's what happens here in Australia.

Quote from: The Q on October 07, 2021, 09:02:42 AM
Don't bother telling anyone... How would they know?
In any case she's only paying her expenses.

That what we did, 30 years ago..

That's fine as long as you don't get picked by HMRC for a random investigation, and they are on the increase as they're aware a lot of people generate an income from the likes of EBay without declaring anything.

Ignorance of the (tax) law is no defence. HMRC are heavy hitters, and defending an investigation is costly. I'd still recommend speaking to an accountant.

Have a read here:

https://www.twpaccounting.co.uk/blogs/how-do-hmrc-choose-who-to-investigate/

I would have thought that as family there would be no need to deal with this as her being a tenant.

essentially she is simply living with you, and as long as she doesn't pay rent as a tenant, surely there is no problem.

I assume she will sometimes pay for the weekly shop, or maybe help with a bill or two.

I'd tend to ring the HMRC, explain the situation and see what they say.

Quote from: class37025 on October 07, 2021, 10:53:51 AM

I'd tend to ring the HMRC, explain the situation and see what they say.

Why wake a sleeping dragon? Any call would be instantly deniable by whatever thicko gave wrong info out.
Someone has to prove your MIL is paying you and I'm quite sure any donation could be lost in food shopping, petrol etc.
If you do feel you need to ring HMRC I'd suggest it's more along the lines of 'what's available to me/us as my MIL's carers

Quote from: Newportnobby on October 07, 2021, 12:22:35 PM
...
Why wake a sleeping dragon?

I quite agree.  Payments from kids living at home making contributions to household expenses surely aren't taxable so why should this be any different.

  when I first saw the thread title in the "New Posts" list, I naturally assumed it would lead to the jokes forum... 

Quote from: PLD on October 07, 2021, 07:00:12 PM
I naturally assumed it would lead to the jokes forum... 

Sorry, but that leads me to the post -

Quote from: Newportnobby on October 07, 2021, 12:22:35 PM

Why wake a sleeping dragon?

I know you said you all get on @TrevL , but I could not resist.  (Sorry again). In fact I got extremely well with the two MIL's I have had. 

I don't know how it is in the UK but here in the Netherlands we have to inform the municipality (I hope that this is the right translation, I had to ask google... ) about where we live.
So if your MIL moves to your address  the authorities wil know about it anyway.
I would ring them and ask what to do.

Jan

Quote from: JanW on October 07, 2021, 10:46:59 PM
I don't know how it is in the UK but here in the Netherlands we have to inform the municipality (I hope that this is the right translation, I had to ask google... ) about where we live.
So if your MIL moves to your address  the authorities wil know about it anyway.
I would ring them and ask what to do.

Jan

Thank you Jan, we call it a "council", who look after the local Electoral Roll . She will have to be registered there so she can vote if she wants to.

Quote from: OffshoreAlan on October 07, 2021, 06:40:20 PM

Quote from: Newportnobby on October 07, 2021, 12:22:35 PM
...
Why wake a sleeping dragon?

I quite agree.  Payments from kids living at home making contributions to household expenses surely aren't taxable so why should this be any different.

Having had a quick search online the only thing I can see, is if you are on benefits, that changes the situation a lot, or if she sell's her previous home and uses the money to pay off your mortgage..

You're allowed to rent a room out to strangers for up to £7500 without tax, I don't suppose MIL will be paying that much and anyway she's family..