Rent a Room Scheme: Who Qualifies and What You Get
Learn how you can earn up to £7,500 in tax-free rental income by renting out a furnished room in your own home.
The Rent a Room Scheme allows homeowners to earn money by renting out a furnished room in their primary residence without paying tax on that income.
Who it's for
This scheme is for homeowners who have an extra furnished room in the home they live in and wish to rent it to someone else.
What you get
You can receive up to £7,500 in tax-free rental income. This means you can bring in extra money from your property without it affecting your tax calculations, as long as the total amount you receive stays within this threshold.
What it costs you
There is no cost to use this scheme. It is a tax relief provided by the government to help homeowners manage the costs of having a lodger.
The catch to know
You cannot use this scheme if you are letting out a whole property. This scheme is strictly for renting out a room within a home where you also live.
How to apply
- Ensure the room you are renting out is furnished.
- Confirm that you are living in the property as your main home.
- Keep clear records of all rental income you receive.
- Contact the relevant government body if your income exceeds the tax-free limit.