Taking on a lodger

You may be considering taking in a lodger to help earn some extra money. The national Rent a Room Scheme provides the opportunity to earn up to £4,250 a year tax-free if you take in a lodger.

Rent a Room Scheme

The Rent a Room scheme  makes it possible to earn a certain amount of tax-free gross income (receipts before expenses) from renting furnished accommodation in your only or main home.

It is possible to use the scheme if you own a property or if you are renting from a landlord. You must check the terms and conditions of agreements you have with your mortgage lender or landlord and the company covering your home insurance.

You can not take advantage of the scheme if your property is converted into separate flats or if you have a separate building on your property.