How much can I earn from lodgers tax-free under the Rent a Room scheme?

Full answer

The Rent a Room relief threshold has been £7,500 since 2016. If you let a furnished room (or rooms) in your only or main home to a lodger and your gross rental income is under £7,500, you do not need to declare it or pay any tax. If your income is above £7,500, you can either: pay tax on the profit (income minus allowable expenses) or use the simplified method and pay tax only on income above £7,500 (useful if you have minimal deductible expenses). The relief applies automatically if income is under the threshold. You cannot use Rent a Room if you run a bed and breakfast as a business or are a non-resident landlord.