HMO = Income from Property or self employment

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  • HMO = Income from Property or self employment

    I am looking for some feedback on a response I have had from HMRC. A friend has a large house and they have 3 lodgers, which makes them a HMO.
    They need and want to declare the income to HMRC and I would say it should be declared under income from property, but HMRC have said it should be treated as business income.

    This doesnt seem right, its their own home and I have always thought lodgers rent is income from property.

    Has anyone else come across this or did I just find a tax officer who was confused.

    thanks
    Helenka2020

  • #2
    Income from property is normally declared on Form SA105 . Download the SA105 notes for completing this form and check if it is correct for your friend.

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