Hi I'm filing a tax return online, where a room in a house is being rented out for £3060 per year (rent a room tax free allowance £4250) I have ticked the box that says 'are you claiming rent a room relief) then goes to ask me the income so I put that in £3060 and no expenses but the tax calculation at the end is calculating tax on the property income (rent a room scheme)
Can anyone tell me why this is happening or where I may have gone wrong? I did this last year for the same client and they were not charged tax on this
Here's an insert from a help sheet that seems to agree with that...
Completing your Self-employment pages
If your gross receipts (and balancing charges) are less than £4,250 (or £2,125 if appropriate) and you want to claim Rent a Room exemption, enter Rent a Room in box 1 (short pages) or box 2 (full pages) and leave the rest of the pages blank.
If your gross receipts (and balancing charges) are more than £4,250 (or £2,125) and you want to claim Rent a Room relief (so you cannot claim for any expenses of the letting): enter Rent a Room in box 1 (short) or box 2 (full) fill in boxes 2 to 7 (short) or 1 to 9 (full), as appropriate enter the gross receipts (including services provided and balancing charges) in box 8 (short) or box 14 (full) enter £4,250 (or £2,125) in box 18 (short) or box 29 (full) if you have any balancing charges enter them in box 25 (short) or box 58 (full). If you do not want to claim Rent a Room relief fill in the Self-employment pages in the usual way (claiming expenses and capital allowances as appropriate).
