Lin

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, 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?

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, I am looking to open a savings account that will give me interest on cash (not stocks/shares/bonds/etc). The interest is accrued and paid into the account monthly. It's likely that by the end of this tax year, I will go over my personal savings allowance as outlined in the "Tax on savings interest page" (https://www.gov.uk/apply-tax-free-interest-on-savings). I have been told that the tax paid is based on when earnings are realised rather than when gains are made, and the page also mentions how HMRC would automatically amend my tax code if I am employed. This leads me to a few questions: - When is cash interest "realised"? In my case, as it is paid into my account monthly, even if I do not make use of the money is it still considered realised every month? - I am currently in full-time employment and have my taxes taken through from PAYE. However, my employer would not be privy to any gains I make on cash interest. If HMRC amend my tax code, are there any actions I need to take from my end to notify my employer of a tax code change? Overall I just need a little clarity on cash interest gains and if there's any actions I need to take.