Last reviewed: November 2026
Under the rent-a-room scheme you can earn up to £7,500 a year tax-free by letting furnished accommodation in your own home. If you share the income with someone else, such as a partner, the limit is £3,750 each.
Who can use it
- You let furnished accommodation in the home you live in, whether you own it or rent it.
- It also covers running a bed and breakfast or guest house from your home.
- It does not apply if your home has been converted into separate flats.
Below or above £7,500
If your rent is £7,500 or less, the relief is automatic and you don’t need to tell HMRC. If it is more, you must complete a tax return and choose one of two methods:
- Use the scheme: pay tax on the rent above £7,500, with no expenses deducted.
- Opt out: pay tax on your actual profit, after expenses. This is better if your costs are high.
Lodgers, holiday guests and short lets in your home can all count. Keep a record of the rent you receive either way.
Not sure which method saves you more? We’ll work it out for you. Ozvite sa nám.
Sources: GOV.UK – Rent a room in your home.