Making Money from Property

Making Money from Property


 

This subject is vast and we do not expect to cover every option in full but we will list as many as we can. Happy Reading!

Buy to Let- Domestic

Buy to Let – Tourism

Rent a Room

Air BNB

Garage Rental

Land Rental

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Buy to Let- Domestic

 

 

 

 

Buy to Let – Tourism

 

 

 

 

Rent a Room

 

You can rent out part or all of your home for up to £7,500 per annum without having to declare it. Remember, if you just rent out a room, the renter will more than likely be using your kitchen, bathroom and possibly your living room too, so be careful to clarify what you expect.

The Rent a Room scheme Under the Rent a Room scheme you can rent out a spare room in your home and the first £7500 you earn from it (from 6 April 2016) will be tax-free. If you make less than that in a year, you don’t have to do anything; if you earn more, you have to fill out a tax return. The room you let must be furnished, part of your main home (a room or floor but not the whole property) and you can’t use the scheme if you are living abroad. As a resident landlord you are responsible for making sure that the property is safe and well looked after. If you provide extras, such as meals or a laundry service, this should be added to the rent as part of your Rent a Room income. Short-term rentals If you own your own home you could use one of the growing number of online sites to offer temporary accommodation to tourists, business people or visitors. The best known of them are: › Wimdu lets you advertize your room, house or flat to people around the world. You decide how much to charge and create your own listing. After each booking you can rate your guests and they can rate their stay. In the event of any damage being caused Wimdu will protect you up to £500,000.

(If you live alone and decide to rent out a room in your home, don’t forget to notify the council as having a tenant will mean you no longer qualify for the single occupant discount for council tax.)

Read more

HS223 Rent-a-Room Scheme (2017) – GOV.UK

 

 

 

 

Air BNB

 

 

 

 

Garage rental

Renting your garage or driveway You don’t have to let people into your home to make some extra cash. You could rent out your driveway or garage and make some extra cash. One of the main online sites lets you advertise your spare parking place or garage to anyone who wants to park where you live, and people can book online. New sharing-economy tax allowance From April 2017 there will be a new £1000 tax-free allowance for earnings from short-term lets, such as through the online sites, or money you receive from letting out a driveway or loft storage. This means that there will be no income tax to pay on the first £1000 earned in this way each year.

Land Rental

 

We are not tax advisors and we strongly recommend you seek independent advice from specialists and check for changes in the law on anything we have mentioned.