Have you made extra cash from your home or unwanted belongings?

Jessica- earn up to £7500 tax free ?? , when I am taxed twice on my small pension ? . I am also nearly on minimum earnings. Why have you not qualified your convo with – this applies to LANDLORDS and have you seen the eviction rates in London recently and the very high rates for rentals ? I happen to be a “hoarder ” because I love old electrical/electronic/engineering items . I am also a lover of art / Art Deco/Art Nouveau /old books/clocks /telephones / stamps/etc etc , many are there for me to enjoy not to sell , maybe on the point of death I might part with them but this is during a recession prices are down unless its gold/silver.

The rent a room relief is very helpful for those wanting to share their home (not live out landlords) to help towards the running costs and a few will even make a decent profit now the allowance has increased from £4250 to £7500.

Of course, this is turnover, you can’t deduct costs, only the £7500, so once income rises it’s often better to prepare accounts or at least consider it.

It’s worth reading the guidance notes accessed from the red “take in a lodger” link in the Intro as this clearly sets out the tax position. The rent-a-room tax relief scheme is good for people who find themselves with more accommodation than they need but cannot easily downsize without losing contact with friends, family and community resources. With luck a lodger might be able to help with running the home in return for free meals, cleaning or laundry. It is worth bearing in mind that the person renting the room is a lodger, not a tenant, so there is an expectation that they will share other parts of the house with the owner and sensible security precautions should be taken and appropriate conventions need to be established at the outset.

I suppose they can – hasn’t that situation has been in place since time in memorial (my parents charged me £30 a week towards food and costs back in the days of the flintstones).

I guess, like everything, trust and a handful of luck comes into it but a signed lodger agreement goes someway to everyone knowing where they stand right from the start. No reason why you can’t ask for references if you aren’t accepting those leaving home for the first time. From cupboard and fridge shelf entitlement, to rules on recycling and bin day the agreement should cover it all. And, although a months notice is short, if the arrangement isn’t working out thats a good time period on both sides.

This is similar (although now tax free to £7500) to my arrangements in 1985 when I spent a year at a polytechnic. All the halls were taken by degree students and I had 10 days to find somewhere. The house I found was living with the owner, some meals provided, with a shared room and bathroom. It was a very good option for what I call temporary-permanant accommodation.

And if apprenticeships take off now the apprentice levy is starting, we will need more of it as they can’t rent halls but will need somewhere economic to live.

It’s definitely worth considering good ways of mitigating risk. Take a look at spare room website. There you can choose the profile of the lodger you want, so you can avoid males or females or certain ages or ask for professionals – even only provide mon-fro let. You can ask for references. And deposits. With an agreement you have some sort of mutual understanding. However, there’s always more that can be done as you never know, I suppose, if you are going to pick that bad egg.