Did you know you could earn up to £7,500 per year tax-free from letting out furnished accommodation in your home?
The Rent-A-Room scheme is a national scheme which allows people to earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation.
The scheme allows people to let out as much of your home as you want.
Explained on the government's website: "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 can opt into the scheme if you’re a resident landlord, whether or not you own your home and/or you run a bed and breakfast or a guest house
The scheme cannot be used on homes converted into separate flats.
You can read more here.
