UK Taxes

Lauren10
Level 2
England, United Kingdom

UK Taxes

Hi,

 

I currently rent out my flat, which is my main residence when I stay at my partners. As this is still my main home do I need to pay taxes when I earn over the £7,500 threshold? It's very confusing tyring to figure it all out!

 

Thanks

 

Lauren

 

 

1 Reply 1
Tracy0
Level 10
London, GB

Ok a few things here:

 

The Rent a Room Scheme (the £7500 exemption) only applies if you are renting a room or a floor in your main home.  If you're renting your whole flat (even if you sometimes live there) I don't think you are eligible for the exemption, so you'd pay normal income tax at whatever your usual rate is on the entire amount you earn over the year from all sources which go over over the personal allowance.

 

Anyway - Even if you were able to claim the the RaR exemption, you would have to pay tax on earnings over and above that £7500 at your usual rate.  They just ignore the first £7500.  You can NOT use the exemption and claim expenses (which you can't do with Rent a Room) but you'd have to figure out which approach is better for you given your overall tax situation.

 



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