Trading, Property and Rent a Room Allowances
The tax-free allowances for small amounts of income from self-employment, renting out property, and letting a furnished room in your own home.
Trading allowance
£1,000
Gross income from self-employment or casual work up to this each tax year is tax-free, and you don't need to register for Self Assessment.
GOV.UK — HMRC · checked 10 Nov 2026
Property allowance
£1,000
Gross income from land or property up to this each tax year is tax-free. Above it, you can deduct £1,000 instead of your actual expenses.
GOV.UK — HMRC · checked 10 Nov 2026
Rent a Room limit
£7,500
You can earn up to this each year tax-free from letting furnished accommodation in your own home, whether you own it or rent it.
GOV.UK — HMRC · checked 10 Nov 2026
Rent a Room limit if you share the income
£3,750
The limit is halved if you share the rental income with someone else.
GOV.UK — HMRC · checked 10 Nov 2026