Declaring rent a room income when it is below taxable limit

Hi, I have received rental income from hosting foreign students during tax year 2023/24. The total income amount is below £3,750. I am married and own the property joinly. Can I declare the total income on my tax return, or are we obliged to declare half the amount each and both do a tax return (my wife's taxes are normally handled by PAYE). Thank you!

Hi sw2048,
You can claim Rent a Room Relief, which enables you and your wife to split the exemption limit of £7,500 and each utilise £3,750.
You would complete the supplementary income property page of your tax return and your wife would do the same.
Additional information can be found on our website at: -
PIM4012 - Rent-a-room: more than one source
and
PIM4020 - Rent-a-room: receipts below exemption limit
Thank you.

Thanks for the info. Could you please clarify: if the income is less than one person's allowance (less than £3,750), can just one person declare it, or do we have to declare half each? (The motivation here being to avoid my wife having to do a tax return unless it is absolutely necessary.) Thanks.

Hi,

Each beneficial owner of the property must return their own proportion of the income and expenditure in equal shares, even if the whole of the income is covered by an allowance which is also dealt with in equal shares.

You can find further guidance here:

PIM1030 - Introduction: jointly owned property & partnerships

Thank you.

Are you sure about this as the guidance at https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme says that the relief applies automatically if income is within the limits and only needs to be declared to HMRC if it is above?

Hi,
 

Thank you for your question if all of your letting income is exempt under the rent a room scheme you do not need to notify HMRC of this income  .

I would just like to clarify this before I start on my tax return. Following on from the question from Laura Ford, and the answer to it: * My wife and I, as joint owners, received rental income that was below our tax free allowance (less than £3,750 each). * According to the Rent a Room page, we do not need to take any action: "The tax exemption is automatic if you earn less than £7,500. This means you do not need to do anything. If you earn more than this you must complete a tax return." But, as I already complete a tax return each year, do I have to include the income and claim relief under the rent a room scheme? Or do I simply ignore the income as long as it stays below my allowance?

Hi,

If you are required to file a return for other reasons, you need to declare all of your income, including your property income and Rent a Room relief you are claiming.  

Thank you.