UK VAT and the 28 day stay rule

[Alex8751]

Hi All,

I am very close to the UK VAT threshold with the income from my airbnb listings, and have had to close my calendar for a couple of months to avoid breaching the £85k limit.  However I have had guests who have stayed for a couple of months, and have seen on HMRC website that hotels don't have to charge VAT for long guests stays from the 29th day onwards.  Is this also true for furnished holiday lets? This would allow me to open up my calendar again for April and May if so!

Thanks in advance,

Alex

[Helen3]

I don't know as I am not in your circumstance, but have you checked on the HMRC website or asked your accountant @Alex8751 

[Alex8751]

Hi Helen, in answer to your question, yes and yes - neither is clear on this one so I've referred it on to a VAT specialist.  Just wondering if anyone on here already knew the answer.

[Mike-And-Jane0]

@Alex8751 the rules are many and confused. I believe that you have to register for VAT once you hit 85K (and don't forget you have to include the host fees when calculating this). Whether you then have to charge VAT or not is a different point. BUT I am no expert - Advice to talk to an accountant probably makes sense.

Another point - The tax year ends tomorrow so the 85K limit resets on Wednesday anyway so you are too late this year.

[Alex8751]

Thanks Mikeandjane, what I was trying to get at regarding the £85k threshold, is whether income from a guest staying past the first 28 days of their stay is included in this - there is some HMRC guidance that suggests 29th day onwards isn't electable for VAT, but it is ambiguous as to whether this is for holiday lets as well, or just for hotels. 

Regards your tax year point - the £85k limit is on any 12 month rolling period, not just the personal tax year! A very important distinction some could get caught by if not aware!.