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The rising cost of living has led many to consider taking in a lodger or renting out a room in their home as a way to earn extra income. The UK government offers the Rent a Room scheme, allowing homeowners to earn rental income tax-free up to a certain limit. This video tutorial, presented by Kozan from Financial Madness, aims to clarify how having a lodger works, specifically focusing on renting out a room while still residing in the property. It's important to note that this differs from investing in a property solely for rental purposes, as the discussion centers on homeowners renting out spare space to lodgers instead of tenants.