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Renting Your Rooms Out

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Hi If you had a house with spare rooms and some people rent the rooms out to a lodger. Well I was thinking the same sort of thing but rent to WGs so they could ply their trade for a fee at my place.So my question is would that be OK to do in the eyes of the law and would I have to let any one know or pay any tax man? Or would it be classed as a brothel and could I end up in trouble with the old bill? maybe its OK if its only one WG working then its not a brothel right?

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There have been several similar threads in the Legalities and Legislation section.

Legally it would be OK if you own the freehold (and are not therefore a tenant yourself) and you only let to one girl ( so that the premises don't constitute a brothel). Letting to different girls at different times can still be a brothel even if only one girl ever occupies the premises at any one time.

Have a look at sections 33 to 36 SOA 1956:

http://www.legislati...4-5/69/contents

The income would be taxable. If you had a mortgage then you'd probably be in breach of the mortgage terms.

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whatever you do remember one golden rule if you are a guy never ever ever ever try to indulge with any girl don't do it to indulge with girls keep it professional at all times

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The income would be taxable. If you had a mortgage then you'd probably be in breach of the mortgage terms.

Unless you have a business mortgage then you would certainly be in breach of the mortgage terms.

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Unless you have a business mortgage then you would certainly be in breach of the mortgage terms.

Some of the older mortgage terms are surprisingly lax in this respect. They are a lot tighter now.

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Mortgage terms can be quite flexible, dependent on your level of equity and who you speak to on the other end of the phone!.

I have rented rooms to professional people (week days only) for years, which would be outside the terms of most normal mortgages. I declared this to my then lender, who couldn't give a toss!.

All these things depend on what your doing obviously. However I wouldn't contact them and tell them you'd decide to start a knocking shop at your quiet suburban residence!!

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Mortgage terms can be quite flexible, dependent on your level of equity and who you speak to on the other end of the phone!.

I have rented rooms to professional people (week days only) for years, which would be outside the terms of most normal mortgages. I declared this to my then lender, who couldn't give a toss!.

All these things depend on what your doing obviously. However I wouldn't contact them and tell them you'd decide to start a knocking shop at your quiet suburban residence!!

Mortgage terms have nothing to do with who you speak to. Mortgage terms are covered in writing in your mortgage offer. If it isn't in writing it doesn't exist. You can talk to someone on the phone and then get a letter saying something completely different.

The OP is talking about the Rent a Room scheme, where you can rent out a room in your house and receive up to £4250 in rent before having to pay tax on that income. It's perfectly legal to let the room to a WG but would it be possible to separate the rent you receive from the pimping viewpoint?

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I would do it to help pay off the mortgage I suspect that the mortgage company wont know or find out as they don't really bother doing check ups

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I think you'll find the reality to be very different to the fantasy. It's one thing to rent a room to someone who goes out to work and comes home in the evening.

Renting a room to a WG would involve a stream of strangers entering your home. Often at times when you weren't there. You want that?

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I would do it to help pay off the mortgage I suspect that the mortgage company wont know or find out as they don't really bother doing check ups

In your dreams!! They might not learn till you have a problem, and then you will find that all your associated insurances are invalid, they want to foreclose immediately and you are homeless. It isn't worth the risk.

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I think you'll find the reality to be very different to the fantasy. It's one thing to rent a room to someone who goes out to work and comes home in the evening.

Renting a room to a WG would involve a stream of strangers entering your home. Often at times when you weren't there. You want that?

....and whilst you're at work she'll let her friend work there one or two days a week to help pay the rent. After all you'll never know because you're at work. It's a brothel then with legal implications for you.

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Doing this can invalidate any contents insurance you have - letting random strangers into your house, associated with large amounts of cash payments is certainly higher risk. That said many organised WGs do look after properties, and do put in place security systems to offset this, whether the underwriters recognise this when they see a chance for an increased premium or refusing cover is another thing entirely.

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Hi If you had a house with spare rooms and some people rent the rooms out to a lodger. Well I was thinking the same sort of thing but rent to WGs so they could ply their trade for a fee at my place.So my question is would that be OK to do in the eyes of the law and would I have to let any one know or pay any tax man? Or would it be classed as a brothel and could I end up in trouble with the old bill? maybe its OK if its only one WG working then its not a brothel right?

 

The income from doing this would need to be declared to the tax man and it would be taxable.

 

Unfortunately the Rent a Room scheme (which allows you to earn £4,250 a year tax free from renting out furnished rooms in your main home) does not apply if the room is being used for business or for 'plying a trade'. That is certainly HMRC's view http://www.hmrc.gov.uk/manuals/pimmanual/pim4002.htm and I think they're right.

 

That is of course only fair because the lady would no doubt want to claim tax relief against her business income for the rent she paid. 

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