Rent a Room Scheme
The Rent a Room Scheme is an optional scheme, allowing owner occupiers and tenants the opportunity to receive tax-free rental income by renting out their furnished accommodation to a lodger, in your only or main home.
It allows you to earn up to £7,500 a year (the annual rent a room limit for the tax year 2018 to 2019) tax-free. If you are letting jointly with someone else, this figure is reduced to £3,750.
When can I use the scheme?
When am I not able to use the scheme?
Opting in and out of the scheme
Paying your tax
Impact on Benefits
Housing benefit -
Council Tax reduction
Although you are not able to claim expenses with the rent a room scheme, it is still a good idea to keep detailed records. If you decide to opt out at a later date you may need this information. Visit www.gov.uk/keeping-your-pay-tax-records to read HMRC guide to record keeping.