I am a live-in landlord and have no other source of income other than from renting my rooms, and I take in more than the £7,500 allowance. Can I also use my personal allowance, too? I wouldn't be claiming for any expenses unless they were above £7,500, in which case I would claim them instead of rent-a-room relief.
Arthur Weller replies:
If the gross rent from rent-a-room exceeds £7,500, there is a choice to pay income tax either on the excess over £7,500 or on the rent minus expenses. You are still able to use your personal allowance. See HMRC’s Property Income Manual at PIM4001 (tinyurl.com/msub5vn8).