Rent a room relief is a scheme that enables you to rent a room in your home for some tax benefits. But how do you qualify for the scheme? Read on to find out more.
Many more of us are renting out part or all of our properties to make the most of our assets and earn a little income from them. This has become much easier with the arrival of online platforms to do this and is part of what is now called ’the sharing economy’.
If you’ve jumped into the sharing economy, let’s see if you can you take advantage of this tax relief.
If you rent out a room in your house and your total income before expenses is less than £7,500 (2017/18 and 2018/19) then you will pay no tax on this income.
This includes rent charged, and charges made for other services such as:
To qualify for this relief is fairly simple
Some key things to note about this relief;
There is more information here rent a room relief fact sheet . If your situation is more complicated you will need professional advice. We are qualified tax advisors and can help you pay the right amount of tax so you get the relief you are entitled to and stay safely within the rules. If you'd like advice on any of the above please give us a call on: 01273 882200.
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