Birmingham Daily
NEW

How UK Households Can Boost Their Personal Tax-Free Allowance to £20,070 with the Rent a Room Scheme

Sunday, March 22, 2026 uk housing tax allowance rent income hmrc personal scheme accommodation

UK households have a valuable opportunity to increase their tax-free income by utilising the HMRC Rent a Room scheme. This government-backed initiative allows homeowners and tenants with spare rooms to earn up to £7,500 per year tax-free from letting furnished accommodation in their own home. By taking advantage of this scheme alongside their existing Personal Allowance, many can effectively raise their total tax-free threshold to over £20,000. The Rent a Room scheme has been in place since 2019 and is designed for those who have one or more furnished rooms available to rent.