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Spare Room Allowance: Pay no Tax with the Rent a Room Scheme

Originally published at: https://blog.openrent.co.uk/spare-room-allowance-pay-no-tax-with-the-rent-a-room-scheme/

The Rent a Room Scheme, otherwise known as the spare room allowance, is a fantastic way to earn extra cash from your home. It boosts your bank balance, and you don’t have to pay the taxman a penny for the first £7,500 a year. That means most people won’t have to pay a penny more…

Sam. I seem to remember that you cannot partition off your house as if it will be a flat within a house. No alteration, no seperate meters. . the house has to stay the same as it was before a lodger

Hi Colin, thanks for this. Yes that makes perfect sense. I suppose that would turn your home into two properties and the lodger would no longer be an excluded occupier.

Sam