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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I am renting several rooms in my home. i understand the rent

Resolved Question:

i am renting several rooms in my home. i understand the rent a room scheme but would like to understand better how much i can claim as expenses if i dont join the rent a room scheme
can i claim all of my buildings, contents insurance or just a proportion. Also gas electric etc...is is just a proportion or all of the bills.
repairs are allowed i understand, as are cleaning expenses.
can you help me to understand this better so i can choose whether to opt in to the rent a room scheme or just claim expenses.
many thanks
laura
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello,You can choose which of the following two methods is best for you. Method A:paying tax on the profit you make from letting worked out in the normal way for a rental business (that is, rents received less expenses), orMethod B:paying tax on the gross amount of your receipts (including receipts for any related services they provide) less the exemption limit. The Rent a Room Scheme lets you earn up to a threshold of £4,250 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.You cannot claim expenses on totals, you can claim the percentage of the rented portion for the expenses. If you expect to earn much more than the allowance you may wish to choose not to opt into the scheme and instead record your income and expenses on the property pages of your tax return. You cannot claim 100% of the costs because 100% of the home is not let.https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223-self-assessment-helpsheet
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