Rent-a-Room Scheme, Turnover and VAT

Discussion in 'Accounts & Finance' started by André, Feb 19, 2021.

  1. André

    André UKBF Contributor Free Member

    76 0
    If I understand correctly, rental income above the £7,500 Rent-a-Room allowance is subject to income tax. Does this 'excess' rental income also contribute to turnover for VAT registration purposes?
     
    Posted: Feb 19, 2021 By: André Member since: Aug 21, 2005
    #1
  2. Spur Support Services

    Spur Support Services UKBF Regular Free Member

    195 41
    no. it's income from residential property for renting a room in your own residence to a lodger.
    It doesn't count towards VAT registration.
     
    Posted: Feb 20, 2021 By: Spur Support Services Member since: Aug 21, 2020
    #2
  3. André

    André UKBF Contributor Free Member

    76 0
    Many thanks.
     
    Posted: Feb 20, 2021 By: André Member since: Aug 21, 2005
    #3
  4. STDFR33

    STDFR33 UKBF Big Shot Free Member

    4,614 1,232
    Possibly. You don’t tell us what VAT scheme you use.
     
    Posted: Feb 20, 2021 By: STDFR33 Member since: Aug 7, 2016
    #4
  5. André

    André UKBF Contributor Free Member

    76 0
    The person in question is not registered for VAT, and doesn't plan to be. He has a small income from trading goods which he supplements with renting out a room in his house. The question arose because he wants to make sure his turnover remains under the VAT threshold but we weren't sure whether rental income contributed to the overall turnover figure.
     
    Posted: Feb 20, 2021 By: André Member since: Aug 21, 2005
    #5