Rent a Room Scheme

[dancemom]

Just to confirm I'm correct in my thinking, with the rent a room scheme you are not taxed on any rental income up to £7500 a year however your rental income would still count as income for non tax purposes ie benefit entitlement, is that correct?

Rent from a lodger is counted as income if you claim housing benefit, council tax benefit, or tax credits. If you claim Universal Credit, it’s disregarded as income and doesn’t impact your claim.

Thank you Contess

Do you know if it's disregarded for Carers Allowance?

Rental income does not (currently) count against carers allowance (but I would declare it to them in case it changes)

I don't think it would be disregarded for carers allowance. They actually take child benefit off as earnings for that!

Whoops just seen previous post. That's useful to know.