Airbnb Taxes UK 2022/2023

[Renata545]

Good morning fellow hosts 🙂 

I'm a new hosts, just started a few weeks ago, so much to learn and this community has been my go to for answers to my questions. Thank you for being here. One think that I couldn't find a answer for is regarding the taxes in UK and how much we need to pay or really how the all proceed is ?! has is not much information in the government website. Is anyone that could give me some insight where to start. 

[Mike-And-Jane0]

@Renata545 if you qualify as a Furnished Holiday Let (105 nights booked, 210 available to book) you can offset mortgage interest and all the usual costs against tax. You can also contribute to a pension and get tax relief and you can divide the income between owners any way you want.

Do you have a more specific question? Search FHL on gov.uk and it may help you.

[Renata545]

Dear Mike and Jane,

thank you so much for your help. After reading your response I believe we qualify for the FHL , but I don’t understand what I can and can not claim for my expenses ? Such as mortgage, utility bills etc . 
and how much % we need to pay in taxes over our profit?

and is there any exemptions? 

once again thank you this is so helpful. 

[Mike-And-Jane0]

@Renata545 you can pretty much claim all running expenses - heating, lighting, insurance , cleaning, laundry water rates etc etc. You can keep things simple by just declaring everything on your tax return. You then get the standard 12570 personal allowance and then pay 20% tax on the rest below 50000.

You should also look in to business rates rather than paying council tax.

ONE DOWNSIDE of any type of rentals is you will pay capital gains tax when you eventually sell the property.

[Helen3]

Hi @Renata545 

Have you gone on the HMRC website yet . If not start there.

you could also get an accountant on board to help advise on your business set up and do your taxes