Earn Tax Free cash from a lodger in your home

Posted by:

The HMRC Rent a Room Scheme allows owner occupiers and tenants to receive tax-free rental income if you provide furnished accommodation in your only or main home.

For the tax year 2015 to 2016, the annual Rent a Room limit was £4,250. This reduces to £2,125 if someone else receives income from letting accommodation in the same property, such as a joint owner. The limit is the same even if you let accommodation for less than 12 months.

From 2016 to 2017 tax year, the annual Rent a Room limit has increased to £ 7500 so a nice little earner if you want to let to a student etc  .

You can use the scheme if:

  • you let a furnished room to a lodger
  • your letting activity amounts to a trade, for example, if you run a guest house or bed and breakfast business, or provide services, such as meals and cleaning

 

To ensure you meet the criteria call for advice !

0

About the Author:

  Related Posts
  • No related posts found.

Add a Comment


4 × three =