{"id":345,"date":"2018-05-31T00:00:00","date_gmt":"2018-05-30T23:00:00","guid":{"rendered":"http:\/\/duffyregan.co.uk\/index.php\/2018\/05\/31\/tax-free-home-rentals\/"},"modified":"2018-05-31T00:00:00","modified_gmt":"2018-05-30T23:00:00","slug":"tax-free-home-rentals","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2018\/05\/31\/tax-free-home-rentals\/","title":{"rendered":"Tax free home rentals"},"content":{"rendered":"<p>Since April 2016, the amount of tax-free income you can earn from letting a room in your home has increased to &pound;7,500 per annum, or &pound;3,750 if two persons own a property jointly.<\/p>\n<p>You can use the scheme if:<\/p>\n<ul>\n<li>you let a furnished room to a lodger<\/li>\n<li>your letting activity amounts to a trade, for example, if you run a guest house or bed and breakfast business, or provide services, such as meals and cleaning<\/li>\n<\/ul>\n<p>You can&rsquo;t use the Rent-a-Room Scheme if:<\/p>\n<ul>\n<li>not part of your main home when you let it<\/li>\n<li>not furnished<\/li>\n<li>used as an office or for any business &#8211; you can use the scheme if your lodger works in your home in the evening or at weekends or is a student who is provided with study facilities<\/li>\n<li>in your UK home and is let while you live abroad<\/li>\n<\/ul>\n<h2>&nbsp;<\/h2>\n<p>If your gross receipts from letting aren&rsquo;t more than the Rent-a-Room limit of &pound;7,500 (or &pound;3,750 if jointly owned), you don&rsquo;t pay tax on your profit. If they&rsquo;re more than the limit, you may still be able to benefit under the Rent-a-Room Scheme.<\/p>\n<p>&nbsp;<\/p>\n<p>Gross receipts include:<\/p>\n<ul>\n<li>rental income (before expenses)<\/li>\n<li>any amounts you receive for meals, goods and services, such as cleaning or laundry<\/li>\n<li>any balancing charges<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>If your gross receipts are less than &pound;7,500 (or &pound;3,750), you are automatically exempt from tax on that income.<\/p>\n<p>&nbsp;<\/p>\n<p>If you&rsquo;ve made a loss, however, it may be better for you to pay tax in the normal way &#8211; that is, on your receipts less expenses.<\/p>\n<p>&nbsp;<\/p>\n<p>If your gross receipts are more than &pound;7,500 (or &pound;3,750), you can choose how you want to work out your tax. It can be the actual profit made (rents less expenses) or the gross rents received less the &pound;7,500 (&pound;3,750) allowance; whichever produces the better result.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>Since April 2016, the amount of tax-free income you can earn from letting a room in your home has increased to &pound;7,500 per annum, or &pound;3,750 if two persons own a property jointly. You can use the scheme if: you let a furnished room to a lodger your letting activity amounts to a trade, for [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-345","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=345"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/345\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=345"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}