Hi,
Rent-a-room applies to income from providing furnished residential accommodation in the taxpayer’s only or main residence.
For example, a taxpayer may benefit where they take in a lodger.
Rent-a-room applies to people who let a room in a home they rent as well as to people who own their homes.
Your question regarding taxation and expenses is covered at
PIM4030. The rules either exempt rental income or tax it on a more favourable basis. Under the rent-a-room scheme a taxpayer can be exempt from Income Tax on income from furnished accommodation in their only or main residence if the gross receipts they get (that is, before expenses) are £7,500 or less, see
PIM4012. But they can’t then claim any of the expenses of the letting, see
PIM4020.
Further information is available at:
PIM4001 - Rent-a-room: overview
Thank you.