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Rent A Room Scheme: £7,500 Tax-Free from A Lodger
The Rent a Room Scheme lets you earn up to £7,500 a year tax-free from letting furnished accommodation in your home, such as to a lodger. The limit is £3,750 if you share the income with someone else. Below the limit it is automatic. Above it you must complete a Self Assessment return, and can choose the allowance or claim expenses instead.
At A Glance
Your Rights
What the rules say, with a link to the official source for each.
The Rent A Room Scheme
The Limit
Up to £7,500 a year tax-free from letting furnished accommodation in your home, halved to £3,750 if you share the income. source
Below and Above the Limit
Below the threshold you do not need to do anything. Above it you must complete a Self Assessment tax return, and can opt in to use the tax-free allowance or opt out and report income and expenses. source
Who Can Use It
Resident landlords, whether or not they own the home, and people running a bed and breakfast or guest house. It cannot be used where a home has been converted into separate flats. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 5 OctoberRegister for Self AssessmentIf over the limit for the first time
Steps to Take
Step 1 of 5
Add up rent and any charges for meals or cleaning.
Step 2 of 5
Check whether you are under £7,500.
Step 3 of 5
If over, register for Self Assessment.
Step 4 of 5
Compare the allowance with your actual expenses.
Step 5 of 5
Check your tenancy or mortgage allows a lodger.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
HMRC
Contact HMRC through your personal tax account, the HMRC app or the phone and post details on GOV.UK.
Free Tax Help
TaxAid and Tax Help for Older People give free advice if your income is low.
Good to Know
Small things that make your complaint stronger.
Your mortgage lender, landlord or insurer may need to agree to a lodger.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 16 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- gov.uk/rent-room-in-your-home/the-rent-a-room-scheme Checked 16 October 2026