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The Rent a Room scheme is a scheme that allows you to earn up to £7,500 a year tax-free from renting out a part of your own home, as long as you also live there.
If what you earn from renting out the room is less than £7,500, you don’t even need to declare it to HMRC. It’s tax-free.
If you make more, you still have to file a Self Assessment tax return, but you can claim £7,500 as a flat tax-free allowance.
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