If I am renting out a room do I need to pay tax?Make Text Bigger
I have a 3 bed house and I was living there alone so I advertised last month and got a housemate in a few weeks ago. She has her own bathroom and bedroom.
It has just occurred to me that I may need to pay income tax on this money I am charging her, but I am not entirely sure. I looked online at the income tax and it wasn’t conclusive, but it seems that it would push some of my yearly income over the threshold so I may need to pay 40% tax on part of it?
Can anyone confirm?
Do I need to do a self assessment?
I would have charged a higher amount of rent had I of realised there would be this additional cost to myself.
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