Should I file a return if I earn more than £7,500 in general, or more than £7,500 from lodgers?

As per title. In the https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme it's stated that "The tax exemption is automatic if you earn less than £7,500. This means you do not need to do anything." If I have a lodger and I earn less than £7,500, but earn more than that from a job/PAYE (so my total yearly income is higher than £7,500, even if my lodging income is lower), would I need to file a tax return on the lodging income? I'm somewhat confused as it's not clear if "not need to do anything" is applicable to my general income plus the income from a lodger, or if it's isolated only to the lodging income.

Hi ,
 

As the rental income is over £2500 you still need to file a tax return to confirm that you are in fact claiming rent a room relief. When claiming this, you cannot claim any other rental expenses - see Link : HS223 Rent a Room Scheme (2024)   . Thank you .

Hi, Could you please clarify what the £2,500 is and where it comes from? The first link stipulates that you only need a tax return if you're earning more than £7,500, see: https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme The link you have provided (https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223-self-assessment-helpsheet/hs223-rent-a-room-scheme-2024) does not have £2,500 anywhere in it. What is this £2,500 cap and where does it come from, and how does it relate to Rent-a-Room? Lastly, what exactly is meant by rental expenses? The example in the page of "The rent is £200 a week plus contributions to heating and light" isn't clear - say for example the rent is "bills not included", so the lodger splits the bills with the live-in-landlord. Would this be considered income/expense, despite it not being a part of the rental agreement?

I may have answered my original question by finding a previous thread, where it is stated by HMRC Admin 20 Response: "If the income from your room is above the threshold you will need to complete a Self Assessment tax return." If emphasis is put "from your room" then this would exclude my job/PAYE/other sources of income outside of Rent-a-Room. The response provided in this thread though confuses me, as it is going against the advice of the other thread. Where does the £2,500 limit come from and why would I need to file a return if the rent-a-room income is below £7,500?

Hi,
The £2500 limit is for when a tax return is required. this is shown on the help tool at check if you need a tax return.
The £7500 limit is for rent a room relief. if you are looking to claim this then you cannot claim any other expenses in respect of the rental income received.
If claiming rent a room relief, you also need to show this in a tax return and applies to a room on your own house. you cannot use it if you let out a whole property.
Thank you.