Does anyone know the maximum amount you can earn

[Katherine630]

Does anyone know the amount you can earn as a host before you would have to pay business rates

[Mike-And-Jane0]

@Katherine630 Business rates have nothing to do with how much you earn.

If you run a property as a holiday let then it should be business rated rather than paying council tax. You may also need planning permission to do so although this seems to depend on the whims of your local authority.

[Katherine630]

Hi @ Mike-And-Jane0  thanks for your answer. I Airbnb a small annexe which is attached to my house and someone told me they thought once you earn over a certain amount that you have to class it as a business and may need to pay business rates

[Robin4]

@Katherine630 

Katherine, I think what you are referring to is what is classified as 'Cottage industry'.

If you have no other source of income there are certain benefits attached to operating as a cottage industry.

There is in most countries a tax threshold and you are allowed to earn up to a certain amount of money by operating a 'cottage industry' before you need to declare your earnings for taxation purposes.

In Australia the tax free threshold for seniors like me is $32,279 per year. For younger people the tax free threshold is $20,542.

I believe in Britain, under the 'rent a room scheme'  you can currently earn £7,500 before you need to declare what you are doing and you have a tax free threshold of £12,500 before you become a tax payer.

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Now I am not an accountant Katherine, I have no knowledge of your circumstance or the earning declaration laws in Britain and what I say here is not be used as a basis  for your financial dealings with the government, be it local or national.

You need to consult an accountant in your district to ascertain your benefits and liabilities under British taxation law.

Cheers........Rob

[Mike-And-Jane0]

@Katherine630 @Robin4 If it is a separate annexe then the rent a room scheme doesn't apply. Typically if the annex has bathroom and cooking facilities the local authority will want it separately rated for council tax/business rates. You can pay for an accountant or research yourself on gov.uk searching for rent a room scheme.

[Katherine630]

Thank you so much for the information Rob. Much appreciated.

katherine

[Katherine630]

Thank you so much for the information @Robin4  Much appreciated .

katherine

[Sarah977]

@Katherine630  Follow Rob's advice. Consult an accountant. "Someone told me they thought..." is not something to listen to.