Is your lodger's rent tax free?
The Rent a Room scheme makes the first £7,500 a year from a lodger in your own home tax free. Over the limit, there is a choice to make, and most people make it wrong. Check yours in seconds.
Everything they pay you, including anything for meals, cleaning or laundry.
The lodger's share of bills, insurance, wear and tear. Only used if the normal method beats Rent a Room.
Over the limit, HMRC lets you pick the smaller taxable amount every single year, but you have to know the choice exists. Lekhio watches your lodger income alongside everything else you earn, makes the election arithmetic automatic, and works it out again every year, so the year the answer flips it is already done for you.
Let Lekhio make the call →A general estimate. Rent a Room applies to furnished lettings in the home you live in; the £7,500 halves if the rent is shared with someone else. It is not tax advice. Lekhio prepares your figures and you always approve them.
Questions people ask
How much can I earn from a lodger tax free?
The first £7,500 a year is tax free under the Rent a Room scheme, for furnished accommodation in your own home. The limit halves to £3,750 each if someone else also receives the rent. Under the limit there is usually nothing to pay and nothing to report.
What if my lodger pays more than £7,500 a year?
You choose: opt into Rent a Room and pay tax only on the amount above £7,500, or use the normal method and pay tax on rent less your actual expenses. Whichever gives the smaller taxable amount is allowed, and you can choose each year.
Does Rent a Room apply to a buy to let?
No. Rent a Room is only for letting furnished space in the home you live in. A separate property you rent out is normal rental income, with its own rules including the April 2027 property rate change.