PEOPLE taking lodgers into their home will shortly be able to get more than £80 a week in rent without paying tax.

The North West Society of Chartered Accountants points out that the limit for "rent a room relief" is being increased from £3,250 a year to £4,250 from April 5.

The Society says that because the limit is annual, not weekly, landlords may charge even more than this if the room is not let for the full year.

For example, providing lodgings for two students at £60 a week each for a total of 35 weeks a year will still be tax free, even though the landlord receives £120 a week during the period the rooms are let.

Mr Ian Cherry, President of the North West Society, said: "The other great advantage is that there are no tax formalities to worry about.

"If you do not receive a tax return there is no need to inform the Inspector.

"If you do receive one you simply have to tick a box to say that your receipts for the year are less than the limit." He said tenants could also provide lodgings in their home, provided they were allowed to do so by the terms of their lease. But letting rooms in a second home was not covered and neither was running a bed and breakfast business where guests only stayed a few nights at a time.

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