Rent-a-Room scheme: Does a lodger make financial sense? | This is Money

Rent-a-Room scheme: Does a lodger make financial sense? | This is Money

The recent Budget didn't hold many surprises.

But perhaps the least of them was that, for the 14th consecutive year, 'no change' was made to the income threshold under the current Government's own brainchild – the Rent-a-Room scheme.

Set up in 1992, the scheme was designed to encourage people to rent out a spare room in their property by deeming the first slice of rental income tax-free. However, the last time this threshold was raised to its still-current £4,250 a year, was back in 1997.