I’ve just signed up with a couple of rent a room websites. There are people looking for somewhere short term to rent in my area and I may get some one who wants my spare room. I discovered the tax loophole, which allows the income from renting a room to be untaxed!!
I’ve got a lodger at the moment but his rent has built up and I’ve not been paid. I’ve been direct….texted, emailed and asked and I know he’s short of money but aren’t we all? So if he doesn’t pay me this pay day then I’m going to ask him to leave as I’m sure I can rent the room out. He is the ideal lodger as he complains when the heating is ON! and all he wants from us is the wireless broadband! So in many ways he’s perfect and he’ll let the dogs out but he’s no use if he doesn’t pay his rent. (He only stays for 3 nights in the week and pays – or doesn’t! £10 a night and now owes £300!) Bless him, he even had the nerve to go on holiday in the school break when he owed me money! Anyway, I’m either going to be better off or better educated by pay day!!! In future, I want the rent in advance!!!
Here’s the quote from the HM website! so it’s official! “Under the Government’s Rent a Room scheme, you can rent out one or several rooms in your home, to one or more tenants. The rooms must be furnished, but you cannot modify your home to make the rented area self-contained with its own front door.
Rent a Room allows you to receive up to £4,250 a year tax-free. If you get more than that, you must nominate to pay tax on either the overall profit after utility bills and wearand-tear costs are taken into account, or on the rental income above £4,250.”