Rent-a-room Relief

The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.

You can let out as much of your home as you want.

The tax exemption is automatic if you earn less than £7,500. This means you do not need to do anything.

If you earn more than this, you must complete a tax return. You can then opt into the scheme and claim your tax-free allowance. You do this on your tax return.

You can choose not to opt into the scheme and instead record your income and expenses on the property pages of your tax return.

You may need to calculate the tax effects of both options if your gross rental income from letting a room or rooms at home is more than £7,500.

Share:

Accounting in Sheffield and Doncaster Certificates

Recently Added News

Related News

Autumn Statement Summary 2023

The Chancellor of the Exchequer, Jeremy Hunt, has delivered his Autumn Statement to the House of Commons. The government continues to be faced with challenging

Autumn Statement wish list

On the 22nd November, the Chancellor delivers his Autumn Statement 2023. Presumably, we should expect some give-aways as 2024 is an election year, although the

Quick Links

Web + SEO - LoudCrowd