Claiming tax on 'unofficial rent'
Posted: January 16th, 2008, 3:39 pm
My parents are currently going though a divorce, and my dad is paying a friend of his a small fee to stay at their house untill the divorce is over (£300 a month + he pays for the food).
Is this illegal? Do they have to claim Tax on this £300? I am signing up for EMA but I have been asked to inform them about my dad living away and stuff and i said he was paying them rent to live there... would this get them into trouble?
Im a little worried about this and am not sure whether it was fraud or not. I have been asked to provide evidence that my dad stayed there... which i have with me - im just a little worried and concerned about it sending off =/
Could somebody please let me know the legal issue on this?
Is this illegal? Do they have to claim Tax on this £300? I am signing up for EMA but I have been asked to inform them about my dad living away and stuff and i said he was paying them rent to live there... would this get them into trouble?
Im a little worried about this and am not sure whether it was fraud or not. I have been asked to provide evidence that my dad stayed there... which i have with me - im just a little worried and concerned about it sending off =/
Could somebody please let me know the legal issue on this?