Take on a lodger

If you already have a lodger or are thinking about letting furnished rooms in your home, you can receive up to £4,250 of rent a year tax-free. The Rent a Room Scheme applies to owner-occupiers and tenants who receive rent from letting furnished accommodation in their main home (the one you/your family live in most of the time).

Is this right for me?

You can take advantage of the scheme if you let furnished accommodation in your family home to a lodger.  A lodger can occupy a single room or an entire floor of your home and he or she will pay to live with you.  Lodgers often share family rooms and may or may not take meals with you.

The scheme does not apply if your home is converted into separate flats that you rent out.

You can take advantage of the Rent a Room scheme whether you own your home or rent. If you are renting, you should check whether your lease allows you to take in a lodger.

If you're a mortgage payer it's best to check whether taking in a lodger is within the terms and conditions of your mortgage lender and insurer.

More information on renting a room for tax free income can be found at Rent a Room info on Directgov Direct Gov This link will take you to an external website...