Rent-a-Room Relief Calculator 2026 (£7,500 Tax-Free)
Calculate Rent-a-Room Relief. Earn up to £7,500/year tax-free from renting a furnished room in your home. No tax to pay below the threshold.
Rent-a-Room Relief Calculator
Frequently Asked Questions
What is the Rent-a-Room scheme?
The Rent-a-Room scheme lets you earn up to £7,500 per year tax-free from renting a furnished room in your main home as a lodger. If joint owners, the threshold is £3,750 each.
Do I need to declare Rent-a-Room income?
If your lodger income is below £7,500 you don't need to declare it. If above, you must file a self assessment return and can elect to use the Rent-a-Room method (income minus £7,500 threshold) or actual expenses method.
Can landlords use Rent-a-Room for buy-to-let?
No — Rent-a-Room only applies to your main home (the property you live in). If you let a separate property, normal property income rules apply.
What counts as furnished accommodation?
The room or rooms must be furnished (basic furniture provided). The lodger lives in your home — they are not a tenant in a separate dwelling.
Does the Rent-a-Room threshold include bills?
Yes — if you charge the lodger a single amount covering rent and utilities/meals, that total counts towards the £7,500 threshold.
Can I use Rent-a-Room if I'm renting my home?
Yes — tenants can use the scheme if their tenancy agreement doesn't prohibit subletting. Always check your tenancy agreement.
Do B&B or short-let income qualify?
Yes — short-term lodgers (e.g. through Airbnb) in your main home qualify for Rent-a-Room. However, HMRC guidance says each short-let property is treated separately.
What happens if my income exceeds £7,500?
You have two options: (1) pay tax on income above £7,500 (Rent-a-Room method); or (2) pay tax on profit after actual expenses (standard method). Choose whichever gives lower tax.
Does Rent-a-Room affect Housing Benefit?
Rent-a-Room income is generally disregarded for Housing Benefit and Universal Credit housing costs. However, check with your council.
Can I claim mortgage interest relief alongside Rent-a-Room?
No — if you elect for Rent-a-Room relief, you cannot also claim actual expenses including mortgage interest. The election means you only pay tax on income above the threshold.
Is Rent-a-Room income subject to NI?
No — Rent-a-Room income is rental income, not trading income, so NI doesn't apply.
Can two people share the Rent-a-Room scheme for the same property?
If you jointly own and live in the property, each gets a £3,750 threshold (total £7,500). You cannot both claim £7,500 each.