You can receive up to £4,250 a year tax-free (£2,125 if letting jointly) by letting furnished rooms in your home. This is known as the Rent a Room scheme.
It doesn’t matter how much you earn from other sources – you still get the full tax-free amount.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804
In the current economic climate renting a room is becoming an increasing popular method for boosting income and there has been an increase of 52% in the number of new homeowners taking in lodgers in the past two years.
On average UK room Rent is £406 per month rising to £717 in London.
Accroding to www.spareroom.co.uk
So this could well be worth considering if you need extra cash.
steve@bicknells.net
