Rent A Room Scheme – tax free income

by Property 118

9:10 AM, 20th December 2012
About 6 years ago

Rent A Room Scheme – tax free income

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Rent A Room Scheme – tax free income

EDITORS UPDATE 2017 – please note the ‘Rent A Room’ allowance is now £7,500 per annum

If you’re renting out a room or rooms in your own home, there’s a tax benefit that’s really worth investigating. It’s called the Rent a Room Scheme and offers live-in-landlords the chance to earn £4,250 in rent and services to lodgers before you need to pay any tax on those earnings.

Keen to find out more, we did some digging, and came across an excellent guide from SpareRoom.co.uk, who are experts in room rentals.

Rent A Room Scheme GuideTheir Rent a Room Scheme guide is the clearest explanation we have found to how the scheme works. It not only explains exactly what you have to do to benefit from the scheme but also why you might choose not to join it. You don’t have to learn the intricacies of tax law to understand it either 🙂

The guide explains the choice for landlords and clarifies how each scenario might benefit you as a landlord, and what practical steps you can take to make it work for you.

It’s uncommon to find a source of information which is as refreshingly down to earth, easy to understand and jargon-free as this guide. We’d recommend it to anyone who rents out rooms to lodgers, or is thinking of doing so.

Download your free guide to the Rent a Room scheme now



Comments

Elliot Stephens

11:15 AM, 7th September 2016
About 2 years ago

Fantastic guide!

property88

9:38 AM, 25th March 2018
About 9 months ago

Hi there,

Me and my brother have just bought a two bedroom flat.

My brother is currently living at the property, but wants to move back in with our parents. I am still living in the property. Can we take in a lodger even though my brother is not resident at the property for the immediate future? We're joint landlords and I am still resident.


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