You may need to pay tax on rental income you receive from private boarders or home-stay students.
If your income from boarders or home-stay students is higher than your total costs you need to pay tax on the difference.
What is a boarder or home-stay student?
A boarder or home-stay student rents a room in a private home. They receive meals and other care and services as part of their rent.
They are different to flatmates who share a house, expenses and chores. Usually one flatmate will be the tenancy holder.
Working out your costs
There are two different methods to work out your costs in hosting boarders or home-stay students:
- the standard cost method
- the actual cost method.