Terms & Conditions

[EVS27]

Hi
I have a query, where I have a Council tax assistance claim, the claimant has received 15,000 in payments (expenses) from home stay for international students.

I would assume this would have to be declare as self employed income? due to the large sum (this is in a space of 6 months) so its over the tax threshold of £7200, where home stay income has to be declared (I think)
However reading some “very” old posts there is a mixed stance on whether it is applied as boarders income or self employed.

I’m at a loss of how to treat the income.

Any advice would be greatly appreciated 🙂

[kstev]

I guess it depends on your LCTR scheme. But the students are not boarders with individual agreements between them and the host. The host is paid an income for a number of international students, there are not usually directions on what they have to provide for that payments other than the basics (bed, bathroom use & food) and the amount is a set figure per student, a figure set by the organisation. The host cannot charge what they like. On that basis I would say this is taxable income.

[angyw]

We have a lot of households that take in students on a short term basis from local language schools, if you take several at a time it is possible to make significant amounts of money. We normally input as rent from boarders for the actual periods that they have the students

[EVS27]

this was along the lines I was thinking, just because of the large amount of payments received in 6 months.
and typically the students would normally reside else where, so in my head, I can’t see them as a boarder / non-dep

I have a feeling he hasn’t declared him self as self employed, I will be advising this is what he does.
Because of this, I feel we would need him to declare his income and expenses? (at present he has just provided the payments received from the home stay provider.)

or would it be better, if he confirms he is providing food etc, so we do the disregard of 20 pounds per week and 50% of the income?

Our CT scheme doesn’t have anything specific to this.

Thanks for your replies.

[Author]

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