Are you lucky enough to live near the venue of a major sporting event? Sadly I am not so lucky, but if I was, I would be sure to take advantage of the opportunity to make extra money from the spare rooms in my home as well as maximising the profits from rental property in the area.
Major sporting events such as Wimbledon offer a golden opportunity for opportunist landlords to earn extra income by offering temporary accommodation to sportsmen and women as well as fans. If you have a spare room or flat attached to your property, or even a few rental homes nearby, you can take in temporary lodgers and rake in some extra profits for as long as the event is on.
But before you decide to take advantage of this money earning opportunity, you need to consider the tax implications as HMRC is beginning to sit up and take notice of those who are cashing in on the Government’s Rent a Room scheme. For anyone who decided to let a furnished room out in their main home, this scheme will apply to you (you are allowed to earn £4,250 per annum in rental income tax free), but if the property is already divided into self-contained accommodation units, this tax free allowance is not applicable on any flats you do not live in.
So if you live near Wimbledon, enjoy the extra income for a few weeks per year, but make sure you declare the extra income or you could face a knock on the door from HMRC…
