Rent a Room Scheme - Generating Revenue from your Home

As many UK citizens continue to struggle to survive the recession, new opportunities to earn extra income have begun to surface.  Now UK citizens can earn extra income from their homes (some of it tax-free) with the government's new Rent a Room Scheme.  This program allows homeowners to rent out a spare room and earn up to £4,250 tax-free each year.  Even renters can take advantage of this opportunity, provided that it is allowable as per the lease agreement signed with their landlord.   Recent studies have shown that the number of homeowners renting out space has risen by a drastic 152% over the past year.  Furthermore, this study suggests that 3% of all UK homeowners currently have at least one lodger.  Income generated from renting a spare room currently averages just under £400 monthly, a figure which can total an additional £4,800 per year.  These figures vary greatly, however, depending on the size of the property, the room itself, and the property's location.  Regardless of the price for which a room can be rented, an extra  income is something that any UK citizen can appreciate during the recession. Before renting out a spare room, however, UK citizens should be aware of the advantages and disadvantages of the Rent a Room Scheme.  For those participating in the scheme, expenses related to the letting cannot be claimed.  For example, insurance, repairs, and utility expenses cannot be offset against taxes and payday loans could be needed to pay these accordingly. Homeowners should also consider whether to charge for additional services such as meals and laundry.  If a homeowner receives payment for these services, that payment must be added to the payments received for rent and if the total exceeds £4,250 per year, taxes must be paid. While the pros and cons must be weighed before opting in or out of the Rent a Room Scheme, many UK citizens have chosen to take advantage of the additional income this program allows.  Any homeowner providing furnished rental accommodations from their main home is eligible to receive tax-free income up to £4,250 per year, not just those who own rental properties.  The Rent a Room Scheme is just one of many opportunities that UK citizens can take advantage of in order to survive the recession. UK citizens to do not then have rely upon payday loans as a method of getting extra cash. As the economy continues to struggle, people in the UK will continue to look for ways to get a cash advance of extra income and programs like the Room for Rent Scheme make that possible.

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