Rent a room scheme: Could you earn an income from this years’ holiday makers?
If you’re looking for ways to improve your bank balance, one option is to rent out your spare room. By signing up to the Rent a Room scheme, not only do you enjoy the extra income from the rent, but also up to £7,500 a year is free from tax.
If you have a spare room that you are able to let out fully furnished you could qualify for the rent a room scheme, including Airbnb type lets. Provided the space is part of your main residence, up to £7,500 a year could be earned tax free through these rental arrangements.
Ensure you are okay to participate in the scheme with your insurers and you may even be able to secure a rent-a-room scheme specific mortgage. It’s worth speaking with us today to see if this is an option for you.
Get in touch with our team today to discuss your options
Short-term lettings of spare room
Julia lives near a major sporting venue. To take advantage of this, and to receive some additional money, she lets out her spare room on a short-term basis. She usually makes around £3,000 a year from the lets.
As the accommodation is in her main residence and is let furnished, she is able to take advantage of rent-a-room and enjoy the income tax-free. As the income is less than the rent-a-room limit of £7,500, the relief applies automatically.
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