Tax dodge of the week: a spare room can pay the mortgage
Sep 04, 2007
Having trouble meeting your mortgage payments since interest rates started rising? asks Elaine Moore in the FT. Then why not make your house have a go at paying for itself and make yourself a bit of tax-free income along the way. Rent out your spare room and you can earn up to £4,250 a year from your lodger before you become liable for tax on the income.
MoneyWeek wouldn’t recommend that anyone bought a student house for a child starting university this year, but if you insist on doing so, this allowance added to a student’s personal allowance of £5,225 means they make a nice, tax-free income from renting out rooms: why would a student need an income of more than £9,475 anyway?
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