Renting Out Rooms-Implications

Hi, I have decided to rent out some rooms in my house to help with the mortgage. Some potential renters have inquired about claiming rental supplement. I'm just wondering if they can claim this if the landlord(i.e. me) is still living in the house ?

Also, does anyone know the implications of renting out rooms with regards to my TRS credit (mortgage tax relief). Will I no longer be able to claim this ?

Thanks,
Colin

Off the top of my head some of the key points is you must live in the house and can earn up to 10,000 rent tax free. as long as you live in the house you are entitled to the Mortgage interest relief . The rent received should be returned in your Tax form though it will not incur tax if under 10,000. It is recommended a simple agreement form is drawn up covering some basic points which are highlighted in various websites under "rent a room"

Thanks Dewdrop.

colin_hanley said:

I'm just wondering if they can claim this if the landlord(i.e. me) is still living in the house ?

Click to expand...

Yes they can. I've rented a room under the rent-a-room scheme and I've claimed the relief.

I might be wrong, but I think its the rent-a-ROOM scheme, not rooms! I think the 10k per year can only be from one renter, so if you are renting more than one room you might be in trouble.

Rooms - the tax-free limit is the 10k / annum, not the number of rooms rented in the PPR. - [broken link removed]

mathepac said:

Rooms - the tax-free limit is the 10k / annum, not the number of rooms rented in the PPR. - [broken link removed]

Click to expand...

I stand corrected.