What are the tax implications if I rent out a room in my home?
If you let a room in your house and you are an owner-occupier, or a tenant who is sub-letting, the first £4,250 of any income is tax free, i.e. a rent of £81.73 per week is tax free. If the rent is higher than £4,250, you either elect to pay tax on the surplus above £4,250 (without relief for expenses) or you can treat the arrangement as being a furnished letting and prepare accounts.
If you let a room in your house and you are an owner-occupier, or a tenant who is sub-letting, the first 4,250 of any income is tax free, i.e. a rent of 81.73 per week is tax free. If the rent is higher than 4,250, you either elect to pay tax on the surplus above 4,250 (without relief for expenses) or you can treat the arrangement as being a furnished letting and prepare accounts.
