Rent a Room Scheme.

The Rent a Room Scheme is a government scheme encouraging us to find a lodger for our spare room, helping with things such as mortgage repayments. Under the terms of the scheme you can earn up to £7500 a year from your spare room without paying any tax on the income.

  • Earn up to £7500 each year tax free.
  • Applies if you are renting out a spareroom, or part of your property, but not a self contained part.
  • It must be furnished.
  • You don’t need to be the homeowner but check with your landlord if you have one.
  • If you don’t fill out a tax return and you earn under the threshold, you needn’t do anything.

For more information visit the UK government's Rent a Room Scheme website.