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rent a room scheme although tax free, is it included when applying for benefits?

Started by puddlesmudge, February 16, 2014, 01:24:52 AM

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puddlesmudge

Im working disabled on a low income so tried to claim council tax benefit. My income from rent a room scheme has been included in their calculations. I thought this was an incentive I now find im going to be out of pocket ???.before I challenge this  Is this correct? Thanks fir any advice

jpkeates

The rent a room scheme has a tax benefit to encourage it.
You can earn up to a threshold tax free.

The rent is income though, so I'd assume it is classed as that for benefit purposes.