Are you renting out a room in your main residence, under the Rent-A-Room Scheme threshold?

Are you renting out a room in your main residence, under the Rent-A-Room Scheme threshold?
If you rent out a room in your main residence, you can earn up to £7,500 before paying any tax on this amount. (Or £3,750 if more than one person is receiving income). This scheme is beneficial if you are looking for a convenient way to report your income, with low-level admin required.
However, if you receive income under the threshold, it may be worth opting out of the scheme and reporting on a normal basis for property income so that you are generating losses that can be carried forward and offset against future income.
This is particularly useful if you plan on renting out a second property, as losses do not have to be offset aganist the same property. They must however both be in the UK.
If you opt out of the Rent-A-Room Scheme, you will need to hold the relevant records of your income and expenditure.
Please feel free to get in contact with our BTL team at PJCO if you have any questions: acuityclientsc...
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Disclaimer:
These videos are for educational purposes only. No official financial advice is being given. Never listen to anyone online who tells you to not check with a professional!