Hello and welcome to the site. Thank you for your question.If you let the room for more than the rent a room limit, than you have a choice in how you wish your rental income to be taxed..Choice 1You can opt for the net income (gross rental less expenses) to be taxedChoice 2You pay tax on the gross receipts less the rent a room limit (to be increased to £7,500 from 6 Apr 2016) i.e.the difference, but you don't offset any expenses against the rental income.You won't pay tax on the whole rental income.More information on this can be found on HS223 here
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