Tax-Free Rental Income

The government’s Rent-a-Room scheme allows you to earn up to £7,500 per year tax free by letting out furnished accommodation in your home. You don’t have to do anything as you will be automatically exempted from tax on your rental income.



You can also opt in to the scheme at any time if:

  • you are a resident landlord
  • you run a bed and breakfast or a guest house

If you are a tenant of a house, you can also sub-let out a room to a lodger. You are not eligible for the scheme if you are letting homes that are converted into separate flats.
You can rent out as much of your house as you want. The income limit covers everything that you charge your tenants as part of the rental service. This includes cleaning, meals, or laundry.