Earn up to £4,250 tax free

	Earn up to £4,250 tax free
	Short letting - a guide for Spelthorne residents Increase your income (£4,250 tax free) These are economically challenging times and Spelthorne Council recognises the impact this can have on both our residents and local businesses. It is with this in mind that we wish to draw to the attention of our communities, to an opportunity for local residents to create some additional income as a direct result of the 2012 Games. Spelthorne is one of the five boroughs surrounding Heathrow Airport, with strong transport connections to and from London and other areas of the UK (rail journeys to London can be between 20 – 40 minutes). Coupled with the variety of attractions and nightlife in and around the Borough, Spelthorne has the potential to be a very attractive tourist destination and can directly benefit its residents. 2012 and you The 2012 Olympic and Paralympics games are a global event happening right on our doorstep. Around 800,000 international visitors are expected during the Games, 600,000 of which will be coming through Heathrow; however there are only 125,000 hotel rooms in London. Naturally, visitors need somewhere to stay, and will have to look outside London for accommodation Short letting provides an opportunity for the visitor to stay within a short distance to London as well as generating additional income for the householder. What is short letting and why should you consider it? Home owners,and in some cases, tenants in rented accommodation (please check your tenancy agreement with your landlord) can let out their home, or portions of it, for short periods of time. Generally speaking, there are several attractive reasons to want to do this. For example you might be going on holiday yourself and want someone to house sit while you’re away, or perhaps you live near to an event or venue. Either way, short letting your home or spare room can be a lucrative opportunity. Types of letting and what they mean for you If you rent out furnished accommodation in your/your family’s main home then you may be eligible for the ‘Rent – a – Room’ scheme. The scheme offers home owners/eligible rental tenants the first £4250 earned this way taxfree. Further details about the ‘Rent – a – Room’ scheme (external website) or this PDF by HMRC (external website) (Her Majesty’s Revenue and Customs) that describes the scheme and tax issues in detail. If you let out unfurnished accommodation or rented accommodation that is separate from the main home (for example if you split a floor in your house into a flat or you choose to let a dwelling that is not your/your family’s main home) you will have to declare it to HMRC as rental income. Click here for more details about types of residential accommodation and their financial implications (external website). Depending how you choose to rent out your accommodation you may also be able to claim some of your expenses against your rental income. Click here, for more information on allowable expenses (external website). How to rent out your property There are several ways to advertise your property or spare room for rental. Estate agents will do most of the legwork finding a tenant for you if you decide to use them, although they will take a small percentage of your earnings as a fee. There are also a number of online ‘introduction sites’, some free and some not, that will allow you to advertise your property/room to both a domestic and (crucially) international audience. Below are links to a variety of online sites that provide this service. http://www.holidayletmortgages.co.uk (external website) http://www.londonrentmyhouse.com (external website) http://www.pureholidayhomes.com (external website) http://www.spareroom.co.uk/ (external website) http://www.holidaylettings.co.uk/ (external website) http://www.homeaway.com (external website) http://www.short-let-register.co.uk/ (external website) http://www.olympicletting.com/ (external website) Your responsibilities As a landlord, even for just a couple of weeks, there are several checks you need to make in order to prepare your property for tenants. You have an obligation to ensure that your property’s gas and electrical appliances are in working order. Click here to find out more about your responsibilities regarding gas appliances (external website), and click here for more information about your responsibilities regarding electrical appliances (external website). The ‘Communities and Local Government’ website also has detailed information about your rights and responsibilities as a landlord, which you can find here (external website). There are also a number of national Landlord associations that you may wish to join or whose website’s you may wish to use as a resource. Click here to visit the Residential Landlord’s Association website, or click here to visit the National Landlord’s Association (external website) website. Home insurance Many mortgage agreements’ terms and conditions will require you to tell your lender that you are renting out the property, however as this is only for several weeks it shouldn’t be too much of an issue. Your home insurance shouldn’t be too much of a problem both as it is unlikely to affect your premium and you’ll likely still be covered for fire, storm/flood damage and theft. You may however be uncovered for accidental or malicious damage to property and contents caused by your tenants. Check with your insurance provider about the details of your policy and if they can offer any additional cover for the period of letting.