Income from renting rooms in your own home is taxable. Examples include income from:
- foreign language students
- holiday makers
- paying guests
From 2023, a new income tax exemption is available for those letting out a room in their home using a 'rent-a-room' arrangement.
To qualify as a rent-a-room arrangement:
- the total gross income must not exceed £10,000
- the room must not be rented to a family member
- the room must be in your main residence, and cannot be a self-contained unit
- the lodger must be over 18, or placed in the room by an appropriate organisation if they are under 18
In these circumstances, taxpayers can receive up to £10,000 per year tax free.
In any other circumstances, the flat rate deduction is available.
Flat rate deduction
Declare the total income you've received on your personal tax return and we'll give you a flat rate deduction in your income tax assessment as follows:
This flat rate deduction applies to small scale activities. It doesn't apply to registered guest houses.
Concessions and practice: lodgers and paying guests
Filling out your tax return
Enter the total you received before any deductions and then tell us if meals were supplied (full board) by ticking the box.
Revenue Jersey will give you an automatic deduction from the income of 25% and a 50% deduction if you also provide meals.
Renting a room in your home: tax form help