Airbnb or long term let?

[Andrew3096]

Hello,

I have just purchased a property and was intending to rent out long term but feel air bnb would be the best option. 

I believe the property will make around 20k a year based on other properties in the area in high demand and 14k as a long term let which also seems good.  When considering fees and taxes which option would you go for?

Unsure whether to register as a LTD or sole trader. It will be jointly owned with my wife - her salary is the higher tax rate and mine is just 19k so I believe there is some form 17 I need to consider. This is our only other property after our resi and based in Cardiff.

Advice is much appreciated as it’s a minefield out there!

[Mike-And-Jane0 · Accepted solution]

@Andrew3096 If it is a Furnished Holiday Let I don't believe you need form 17 and can just allocate the income as you desire between yourself and your wife. Other FHL advantages are that the income is pensionable and that mortgage interest is tax deductible. There are significant utility/cleaning/other costs associated with STR.

Where the property is though is critical as the Welsh government will only allow it to be business rated if it rents for a huge amount of nights per year compared to England. I don't think the FHL definition for tax is affected by which country you are in but I am not sure.

[Andrew3096]

Hello,

Thank you for this that’s helpful. I’ll probably need to post this separately but I read  that you need planning permission if you let out over 90 days in Cardiff. This doesn’t seem to be heavily documented  anywhere so unsure if there is some obvious place to find this information. Cardiff council’s webpages require IT degrees to navigate!