Can I accept cash payment from a lodger? Hi. Thinking theoretically here, If I have a 2 bedroom flat and I want to rent one room out under the rent-a-room scheme, can that person pay me in physical cash? Can I then deposit that cash into my bank with no issues? Is it any different if it's under or over the £7,5k tax-free yearly allowance? Do I need some kind of proof/ID to show where/who the cash has come from?