Are you considering renting a room in your own home or struggling with day to day costs and looking for additional income?
Renting a room out in your own home can be an ideal solution. So what are the implications? We give a little introduction to the Rent-a-Room scheme and Rent-a-Room relief.
Who can rent a room out?
Anyone with a spare room in their own home can rent this out. Likewise, if you rent the property you live in and have a spare room this can be rented out with the permission of the property owner to sub-let. The accommodation you offer must be fully furnished in order to qualify for Rent-A-Room relief and doesn't apply to commercial premises such as offices or for business purposes.
When you rent a room you become a landlord. You should always inform your mortgage provider and house insurer if you wish to rent out part of the home.
Please note, this scheme is not eligible for homes converted in to seperate flats.
Register as a landlord NowRent-A-Room Relief
The Rent a Room Scheme allows you to earn rent up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your own home. This relief amount is split if you share the rent between other owners such as a spouse or partner.You can let out as much of your home as you want but would pay tax on any amount over the threshold
You don't need to do anything if you earn less than the threshold as the tax exemption is automatic. If you earn more than this you must complete a tax return where you would opt-in to the scheme and claim the tax-free allowance.
You may prefer not to opt into the scheme but instead record your income and expenses on the property pages of your tax return.
Register Now to Rent a Room
You can find more information on the Rent a Room Scheme here
*Information correct at 5/10/2022