Sheffield homeowners could earn a tax-free income of up to £7,500 a year - this is how

Homeowners in Sheffield considering taking in a lodger could earn a tax-free income of up to £7,500.

The cash is a benefit of the Rent a Room scheme, which was set up to increase the amount of tax-free income homeowners can receive from letting their rooms.

Based on the average monthly room rent in Sheffield of £413 per month, the annual amount needed to take home the same amount of income provided by letting out a spare room to a lodger is between £6,933 (20% tax) and £9,244 (40% tax).

There are more than just monetary benefits to becoming a live-in landlord, according to a guide from flatshare site SpareRoom.

Homeowners could earn a tidy sum from being a landlord.

It says of 2,000 people who had a lodger, over half appreciated the security and peace of mind knowing there was someone else in the house.

The guide adds 46% welcomed the additional company, nearly a quarter liked meeting new people and one in five appreciated having someone look after their pets while away.