The Rent A Room Scheme - Lodgers

If you have income from a boarder, you can be treated as self employed if you are taxed in that way.

Alternatively, your 'profit' from the boarder is assessed by subtracting £6 from the payment he or she makes and then dividing by two.


If you do not provide the lodger with full board, the £6 can be reduced by the DWP, perhaps even to nothing so that your 'profit' would just be half the amount they pay. (

Guardian writes " This is worked out by taking the yearly rental income of £5,400 and deducting expenses, such your mortgage interest, heating, lighting and so on. However, you can deduct only the proportion of those expenses that relates to the rooms you let. So, for example, if your flat has six rooms in total and you let two of them, you can claim two sixths of your expenses as a deduction from your rental income.


Learn more - Earnings Rules For Dependants

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Earnings Rules For Dependants

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