Do you have a spare room in your house that you could rent out to an individual? Well if you do the “rent a room scheme” could be highly beneficial to you.
The rent a room scheme is a HMRC approved tax incentive allowing would be landlords to rent a room within their main residence and to receive the rental income free of tax.
You can benefit from up to £4,250 tax free rental income per annum, which isn’t to be sniffed at. This is regardless of income earned from other sources such as income from employment.
You may be required to submit a self assessment tax return if you earn more than the threshold and then opt for the above income to be tax free. A Cheaper Accountant can certainly help you with this.