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Flatmates and tax

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  • Flatmates and tax

    Hi all,

    sorry you may have already answered this question, but I have searched and nothing come up nor does the internet give any definite answers and IRD wont call back.

    We have one flatmate, she is paying $200 per week which include power, tv internet etc. No formal agreement has been made to include food in this.
    We are thinking of getting a second flatmate at similar rate with same conditions.
    We are the home owners.

    Now my question is: Do I have to declare tax on

    a.) this one flat mate
    b.) if the second moves in, the second?

    Is there any way around this, not that I am trying to evade tax, but just don't really have time to constantly do the by the book paperwork and am too scottish to pay for an accountant..

  • #2
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


    • #3
      Thanks . But what I am actually after is a yes or a no. I have read all those sections and it does not really give any clear information.

      By that I mean do I only have to declare it if I claim expenses, and if not to I still have to pay the tax?


      • #4
        Originally posted by dafra View Post
        Thanks . But what I am actually after is a yes or a no.
        (padding up to min length post)


        • #5

          I think this is the better link:


          • #6
            According to my accoutant.....
            • if you have flatmates, then you MUST declare the income, but yoiu have deductions that you can claim.
            • if you have boarders, then you need not declare the income....but see all the petty rules about amounts etc.
            I advertise for "flatmates" but I charge an all-inclusive price....this makes them boarders.

            I get them to sign a peice of paper saying they agree to pay board of $x/week and to direct credit this into my bank, with their name and "board" after it....I don't really do this for the accountant, but because I'm worried about unscrupulous people claiming to be my "partner"....the last flatmate I had stayed for 12years. I get them to do this every year "for the accountant"....have never told them the real reason

            So it's up to you....will you be better off by declaring and claiming expenses? But remember, if you sell-up, or stop having flatmates you MAY have to do a "change of use" and go thru' the depreciation claw-back esercise. I never asked my accountant about this one so don't know the answer.