Reply To: Income from Second Property that customer doesn’t own


yes you could do that I guess as a compromise…add the money she saved to her income from the rent less the expenses to produce a profit. That is taxable and probably what hmrc would do if they find out about this…..yes I think it is clearly a form of self employment albeit she did not realise it of course. It is without doubt a business arrangement between two parties and the fact that one side did much better than the other is not relevant.

I realise she did not realise the implications…..seen lots of similar and of course not understanding the legal position wont wash esp with hmrc! I doubt they would be so generous.

Good that she has abandoned the arrangement in fact…..she was taking on a lot of responsibility for little reward.