Money Lesson Single

The spare room beats the extra shift

A radiographer of 33 wants another £7,500 a year, and can have it either from the extra shifts her hospital keeps offering or from the spare room she uses for storage. Are the two really the same £7,500?

Employment Property Expenses ISA

Let the spare room

2 Goals

A lodger at £625 a month, which is £7,500 a year covered by the Rent a Room allowance.

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Employment Property Expenses ISA

Take the extra shifts

2 Goals

The same £7,500 a year through the payroll, taxed and National Insured like the rest of her pay.

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Let the spare room Take the extra shifts

The same £7,500 taken from a lodger rather than from the payroll leaves you ~£198.6k better off, and the gap would be wider still if the Rent a Room allowance had ever been uprated.