Can you be charged business rates in the uk for Airbnb lets?

[Jill174]

We have been doing Airbnb for 12 months and have just received an assessment for business rateable value  from the council for £1800 for the year! We only rent out one bedroom and this is a huge chunk our of our profit. Can they do this?

[Cormac0]

@Jill174

now you're starting to see why Hotels charge so much...

[Siobhan82]

My Airbnb whole house to guests, 3 bedrooms with double beds, bathroom landing stairs hall kitchen sitting room and dining room with a large back patio. It is a terraced house.

It makes approx £36 k a year including cleaning fees give or take. £7200 bills a year

£3700 tax a year and accountant fees. 

I am waiting for Business rates as the VOA have taken 2 years to actually reply to me before they were automated reply’s and noone to speak to on the phone just refer to online info. 

How much business rates do you think I  will I have to pay please? 

My council tax £1300 a year. 

I cannot work the rateable value. Thanks 

[Jeff158]

@Siobhan82  you shouldn't have to pay any business rates if your council provides small business relief.

Although you will have to pay private contractors to empty bins and recycling (expensive), you will also have to pay capital gains tax if you sell the place.

[Siobhan82]

Hi thanks for your response. 

My property is let probably at a guess 300 days the last year it has been a lot less and may be in the future, depending on where Airbnb’s eventually go. I thought small business rates relief was just for less than 140 days a year. 

What is capital gains tax? 

Thanks

[David3768]

Captial gains tax is levied on any profits made from Property or other gains like Company asset liquidation etc. So if your property is a buy to let or holiday let yuo mayt be liable on sale for the tax. 18% for normal tax payer and 28 % for higher tax payers

[Oliver355]

Qualifying FHLs will be eligible for entrepreneurs relief so CGT is reduced to 10%. Also worth looking at holdover relief etc. 

[Daniel9888]

Hi,

I was wondering if anyone could help.

I have a commercial building (old shop)  that I am using as an office and converting the flat to an airbnb. 

Can anyone advise what are the council tax regulations for this?

I currently pay business rates which are zero as they are covered by "small business relief" - do i need to do anything ?

Daniel 

[Mike-And-Jane0]

@Daniel9888 its too complicated to give accurate advice as it is not clear if you will end up with two premises or one. When you have two properties you cannot claim small business rates relief unless the rateable value is very low. We got lucky and had our 3 apartments classed as one business as they are all in the same building. You may find the same but with one being an office and one a holiday flat I just don't know.

I would call the Valuation Office Agency as they can be helpful and see what they say. If you have applied for planning permission for the change then the council will possibly send the case to them anyway.

[Daniel9888]

Thanks Mike

Dan

[Kizzy13]

Hi Jill, I specialise in business rates help for small businesses. Did you get this matter sorted? 

Many thanks 

kizzy 

Bluemoon Bliss 

[Smooth-Stays0]

Hi Kizzy,

Can you contact me on **, I would like to have a chat to see if you could help us.

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