Rent a room in your home
The Rent a Room Scheme
The Rent a Room Scheme lets you earn up to a threshold of 拢7,500 per year tax-free from letting out furnished accommodation in your home. The threshold is halved to 拢3,750 if you share the income with someone else.
You can let out as much of your home as you want.
How it works
The tax exemption is automatic if you earn less than your threshold. Which means you do not need to do anything.
You must complete a tax return if you earn more than your threshold.
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.
More information
Read the Rent a Room helpsheet for more detailed information on how to complete the form, and when it makes sense to opt out of the scheme.
Eligibility
You can opt in to the scheme at any time if:
- you鈥檙e a resident landlord, whether or not you own your home
- you run a bed and breakfast or a guest house
You cannot use the scheme for homes converted into separate flats.