Rent a room - 6 months only

bodmil

Hi all,

I know there's a few questions flying around about this now but wondered if I could get some advise?

I live in a good part of town and have a spare room that I think I could get £450 a month plus bills for. Obviously this exceeds the £4350/yr tax free limit.

I'm a bit confused by tax assessments in general but if I were to rent the room for 6 months only, would I be able to charge the above rate and be ok, or is the need for tax assessment pro rata?

I'm not necessarily looking to keep below the limit but I don't particularly enjoy sharing my home and would rather 6 months to earn a quick buck then enjoy my own space!

worried_jim

I've rented out a room for 9 years now @ £400pm, just get on with it and do it- you are making a mountain out of a mole hill.

bodmil

Cool story Jim but that doesn't really answer any of my post.

G_M

£450 x 6 months = £2700 which is well within the rent-a-room scheme tax limit.

If you kept your lodger for a year though you would exceed the limit.

bodmil

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Annisele

Don't worry; the whole tax system is per year and not pro-rata.

If I only have a job for six months of the year, I still get the whole of the personal allowance.

bodmil

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G_M

bodmil wrote: »

Of course I will charge extra for bills.

That must also be taken into account, but unless you are charging a lot for bills you should still be within the limit.

bodmil

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Yorkie1

£110 a month for bills in a shared house? :eek:

Blimey that seems steep!

paddyrg

bodmil wrote: »

Thanks G_M yes will take it into account, I anticipate it will be approx £110 a month.0

Luckily this site has some great articles about getting cheaper gas and leccy and even broadband... £2500 a year in bills is somewhat high