2 articles tagged with Rent a Room Scheme.
Letting a spare room in your own home and letting a whole property on Airbnb are taxed completely differently in the UK. One can use the £7,500 Rent a Room Scheme; the other is taxed as full property income, with different expense and Capital Gains Tax consequences.
The Rent a Room scheme lets you earn up to £7,500 a year tax-free from letting out a furnished room in your main home — no expenses to track, no Self Assessment needed below the threshold. Here's how it works and where it doesn't apply.