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Posted Thu, 04 Apr 2024 08:11:54 GMT by romeeeeo
I am fully employed with a mortgage and due to cost of living I am renting a room. I have been doing this since Nov 2022 I continue to live in the property. Please guide me through on how I need to declare my extra income and what tax should I pay.
Posted Mon, 08 Apr 2024 20:25:23 GMT by romeeeeo
Any advise would be helpful. I am want to follow the legal route.
Posted Tue, 09 Apr 2024 05:39:09 GMT by davidclark490
He income from renting the room is likely considered rental income. Report it on your tax return and deduct any related expenses (e.g., utilities for the room). You may need to pay income tax depending on your total income and tax brackets.
Posted Fri, 12 Apr 2024 07:04:47 GMT by HMRC Admin 20 Response
Hi romeeeeo,
Rent a room relief is an optional scheme that allows you to receive £7500 in rent each year from a lodger, tax free.
However, this only applies if you rent out furnished accommodation in your own home. If it is a shared property, you can claim £3750 each.
You need to live in the property to receive rent a room allowance.
If the income from your room is above the threshold you will need to complete a Self Assessment tax return.
Further guidance is available at: Rent a Room Scheme (Self Assessment helpsheet HS223)
Thank you.

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