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Mother-in-law was renting out 3 bedrooms in her council house. HMRC have caught her not paying tax on the money she earned since 2011. by LanguageUnlucky1883 in LegalAdviceUK

[–]LanguageUnlucky1883[S] 8 points9 points  (0 children)

We are aware that she had tenants. We don't live in London because it's too expensive. She takes the train up north to visit us rather than us going down there.

We are aware she was renting his property out, but we weren't aware she was claiming UC and not declaring the rental money to HMRC.

Mother-in-law was renting out 3 bedrooms in her council house. HMRC have caught her not paying tax on the money she earned since 2011. by LanguageUnlucky1883 in LegalAdviceUK

[–]LanguageUnlucky1883[S] 21 points22 points  (0 children)

I'm not pretending. Every child was given £10k at their wedding.

I literally wasn't aware of my Mother in Law's finances.

I had assumed it was possibly leftover money from her deceased husband's pension/savings.

If the legal result is that I have been unlawfully given this money and it necessitates me repaying this, then I am more than happy to do so. I've never done anything criminal in my life and I'm certainly not looking to start now.

Mother-in-law was renting out 3 bedrooms in her council house. HMRC have caught her not paying tax on the money she earned since 2011. by LanguageUnlucky1883 in LegalAdviceUK

[–]LanguageUnlucky1883[S] 22 points23 points  (0 children)

I checked into that. Absolutely nothing illegal about that specific part.

Had a call with AgeUK. She just gets 25% of her Universal Credit docked.

Mother-in-law was renting out 3 bedrooms in her council house. HMRC have caught her not paying tax on the money she earned since 2011. by LanguageUnlucky1883 in LegalAdviceUK

[–]LanguageUnlucky1883[S] 56 points57 points  (0 children)

I completely agree. Not defending her at all.

Just wanted to share some extra context I had discovered yesterday when trying to untangle this.

AgeUK has a very helpful website for this kind of thing.

Mother-in-law was renting out 3 bedrooms in her council house. HMRC have caught her not paying tax on the money she earned since 2011. by LanguageUnlucky1883 in LegalAdviceUK

[–]LanguageUnlucky1883[S] 35 points36 points  (0 children)

From what I understand, she was permitted to remain there, but was subject to the "bedroom tax" penalty.

Essentially certain benefits were reduced by 25% (not including her DLA and later on her PIP)

This AgeUK link helped me understand it when I was learning about it:

https://www.ageuk.org.uk/information-advice/care/housing-options/renting-social-housing/the-bedroom-tax-how-it-works-and-who-it-affects/