Can I rent out my spare room to make some extra cash? The short answer to this question is yes. You can make a decent income by renting out your spare room, and it is good idea to be aware of the Rent a Room scheme before you get started. Read on to discover more about it.
The Rent a Room scheme is an optional scheme for anyone that wants to let out a furnished room to a lodger. This can be a tenant or an owner-occupier. This scheme gives participants the ability to earn as much as £7,500 tax-free per annum, or you can make £3,750 tax-free yearly if you are letting jointly. If you earn more than this, you need to complete a tax return. If you are renting the property, and you want to rent out a room, you need to ensure your lease gives you permission to do so. If you want to take advantage of this rent my room scheme, opt in on your tax return. When you earn more than £7,500 per tax year, you have two options available to you. The first is to pay tax on the gross income; deducting the tax-free threshold. However, this option does not provide any expenses allowance. The other option is to pay tax on your actual profit, which is the normal agreement for any rental business. To calculate the profit, you need to deduct allowable expenses from your income.
Now you know the answer to can I rent out my spare room to someone, the next step is to advertise the room you have available. This is something we can assist you with at Bellrooms Ltd. All you need to do is enter your details and we post your listing immediately. You can advertise as many as 20 rooms via our website: https://www.bellrooms.com/.