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Do I need to pay tax if renting out rooms in a flat I live in and share?


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Hello,

 

I was wondering if it is legal to rent out room in a flat that you are renting yourself?

My LL says he is ok with it and my contract says I can rent out rooms.

 

I was wondering if that is ok tax wise? I would still live in the flat myslef.

There would be 3 other rooms to rent.

My rent is 1500 excl bills etc. I would receive around 1900 pounds a month, which would cover the rent and council tax. It would not cover all of the bills.

 

Do I need to pay tax on this as I dont make profit on it?

 

Thanks

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Short answer: Yes, you would have to pay income tax.

 

Long answer: Depending on your current earnings and whether you opt in to the Rent a Room scheme, you could get the first £4,250 per year tax free. https://www.gov.uk/rent-room-in-your-home gives an overview of the scheme and outlines what you need to do.

 

Ultimately, you would need to contact HMRC to find out exactly how much you would be taxed on and what you can write off as expenses.

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