Rent a room tax relief?

*Kat*

I just wanted confirmation that I can rent a room - make ~£7000 profit without paying tax?

Even though I have an initial salaried Income?

Slithery

You can have a lodger, yes.

You can't let out all or part of the property to a tenant with an AST.

G_M

See


* Lodgers: advice & links for landlords & lodgers

FreeBear

You are allowed to receive an annual income of up to £7500 before expenses.

If your rental income exceeds £7500 per annum, then the rent a room scheme is not for you.

glennevis

You cannot deduct expenses, so the total annual income from rent a room must be less than £7500 per annum.

anselld

glennevis wrote: »

You cannot deduct expenses, so the total annual income from rent a room must be less than £7500 per annum.

FreeBear wrote: »

You are allowed to receive an annual income of up to £7500 before expenses.

If your rental income exceeds £7500 per annum, then the rent a room scheme is not for you.

These are both incorrect.

You could have lodger income in excess of £7500 and still use RaR however the tax deduction would be capped at £7500. You would have the choice to uses RaR or deduct actual expenses.

Honeylife

You are correct if within the limit of £7,500 absolutely nothing to do with how much your salaried income may be.

If the income from the rented room/Lodger is up to £7,500 per annum you dont have to do any thing, but if it goes above that you have to declare it and let the HMRC know. https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223-self-assessment-helpsheet/hs223-rent-a-room-scheme-2017--2

If you wish to remain within the limit of £7500 either rent for 10 or 11 months a year or keep it at a max of £625 pcm