Linked inAdd us on facebookFollow us on Twitter www.Homes24.co.ukwww.inea.co.ukwww.primelocation.comwww.globrix.comwww.zoopla.co.ukwww.depositprotection.comwww.landlords.org.uk
Estate Agents in Liverpool and Runcorn | Letting Agents in Liverpool and Runcorn - Tyrer & Hart Property Specialists

Rent a Room Scheme

Here’s a pleasant surprise, if you rent out, or are considering renting out, a room in your home you can get up to £4,250 tax free income! This is all due to a government scheme called Rent A Room designed to encourage people to take in lodgers. Here’s how it works :

  • You let out a room or part of your main property (it can be a whole floor but not a self-contained flat).
  • It must be furnished, unfurnished rooms don’t qualify.
  • You don’t have to be a homeowner, if you have your landlord’s consent you can take advantage of the scheme as a tenant.
  • If you don’t normally fill out a tax return and the income is below £4,250 (around £350 a month) you don’t even have to do anything, the exemption is automatic. If the amount you earn is above just let the tax office know.

If you usually fill out a tax return then consider whether you’re better off in the scheme or not. Under the scheme you can’t claim expenses for wear and tear, insurance etc. so you may be better off out of the scheme. If you spend more on decorating a room and keeping it in order than you make then you’ll be making a loss and not liable for any tax.

Tenancy Agreement

Taking in a lodger has fewer legal requirements than letting a whole property. However, we'd always recommend using an appropriate lodger agreement as it will protect both you and your lodger and give you a basis for reference should any disagreement arise.

A Lodger Agreement is used when a landlord wants to rent a room in a furnished property where the landlord lives and shares common parts of the property (e.g. bathroom, toilet, kitchen and sitting room) with the tenant or tenants. If you want to rent a room in your flat or house, then a Lodger Agreement can only be used in situations where the property is your principal home.

Tyrer & Hart can find you the ideal lodger and draw up an appropriate agreement for your complete peace of mind.

Tyrer & Hart Property Specialists

Legal & Privacy | Sitemap | Links | Web Design and Software by Acquaint CRM
© 2018 Tyrer & Hart - Letting Agents, Estate Agents in Liverpool & Runcorn