READER QUESTION

Q I have been hearing about the ‘Rent a Room’ scheme. Can you tell me more about it?

A Under the government’s Rent a Room Scheme you can earn up to £7,500 per year tax-free from taking in a lodger. This is halved if you share the income with a partner or someone else. For more information visit gov.uk. Just remember: before letting out a room in your home, if you have a mortgage you’ll need permission from your lender. If you rent the property, you’ll need your landlord’s permission. In both cases, you’ll need permission from your home insurer.