Rothschild
07-12-2010, 23:09 PM
Hi, I understand that if I rent out one room in my own home I can charge roughly £350pm tax free under the rent a room scheme. Do I take it that this £350 has to include bills? The reason I ask is, if I charge £350pm for rent, but then the lodgers half of the bills comes to say another £250+ do I have to pay tax on the extra £250 even though this is just the lodgers half of the bills. I'm cautious because I live alone at the moment and my bills and expenses are very very low. If a lodger moves in my bills are going to be a great deal more than they are now. If not, I can't see it being worth it. If my lodgers half of the monthly bills come to £300, that means that he's actually giving me £650 not £350 even thought I'm only getting an actual profit of £350. What do you advise? thanks for your help.