Did you know that you can earn up to £4250 tax free every year from your spare room?
If you are thinking about letting furnished rooms in your home, you can receive up to £4,250 a year tax-free (£2,125 if letting jointly) through the government’s ‘Rent a Room’ scheme!
If you are a live in landlord offering furnished accommodation in your home to a lodger or guest you qualify for the scheme. If your income comes to £4250 or below (£2125 if letting jointly) you will not be taxed on this income. That’s the equivalent of £350 per month! Anything above this threshold is taxable.
Own your home?
Always remember to check your mortgage and home insurance policies to ensure you are covered for hosting a lodger or guest.
For further information visit: Rent a Room Scheme web page