Renting out a spare room.

[dover]

I am self sufficient but not working. I would like to rent out a room in my 3 bedroomed house. I dont imagine there will be a tax issue but what are the legal issues involved in this ?
What would i need to do ?

[Ethel]

This might help

http://www.findaproperty.com/displaystory.aspx ?edid=00&salerent=1&*******=10078

[J.JJ]

as far as i know, if you simply rent out a room but allow the person access to the lounge, kitchen etc ( what used to be called having a lodger ) then you do not have to pay tax on any income gained.

if howver you make the facilities for the exclusive use of the other person ( i.e. a self contained flat ) then you would be subject to tax on any earnings.

your local tax office or citezens advice bureau should be able to give you a leaflet about this.

[Peter Pedant]

yes there is

there is a tax charge and I cant put my finger on the bit - however the upside is that it is incredibly tax efficient. I THINK the first �3 600 is TAX FREE! - I think

[antiguru]

This is the imaginately named Rent a Room Scheme. Full details on the HMRC website and also at: http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/TaxOnPropertyAndRentalIncome/DG_401780 4

�4,250 a year tax-free, plus of course your personal allowance. Still need to declare though�.