Rent A Room scheme

Rent A Room scheme

Didn't find your answer?

Hi

Have been looking into HMRC 'rent a room' scheme where one can legitimately take a lodger and earn £4250pa 'tax free' (that is if I've read it correctly).

Having read 'do I need to complete a SA return' I'm fairly certain that one is not required - only other income is from 'PAYE' employment so would just like to check:

1 - Up to £4250 can be earnt 'tax free' by 'renting a room' to a lodger and fulfilling the rules of the HMRC scheme

2 - without having to advise HMRC

Question is would it be prudent to advise HMRC as there are always people out there who think you're doing something you shouldn't & might try to report you

3 - Does using the rent a room scheme have any implications on CGT when selling the house?

Many thanks for all your help and comments.

Replies (1)

Please login or register to join the discussion.

avatar
By young ronaldo
07th Dec 2012 11:58

No need to notify.

Hi Jane,

You seem to be up to speed on this issue but for clarification on your concerns, follow the following links:

https://www.moneyadviceservice.org.uk/en/articles/rent-a-room-scheme-how...

http://www.taxguide.co.uk/content/rent-room-scheme

Thanks (0)