I know this year this has definitely been a topic. In Arizo...
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I know this year this has definitely been a topic. In Arizona this year the news was saying 109 days in a row temperatures o...
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Hi,
I converted my garage into an Annex and have been successfully using it as an Airbnb.
With regards to Tax, I have been told to go down Sole trader route. I am usure on the HMRC site what to do as some of the questions are misleading?
Is there anybody out there who can help me?
Kind regards Derek
@Derek613 I cannot help but I can sympathise. The situation you are in is complex and doesn't seem to fit well with HMRCs standards.
We have struggled for years to get the correct tax and National Insurance treatment and basically go through the same angst every year when trying to pay voluntary NI. It does not help that I keep forgetting what we have been told!
The key though is to call HMRC at 8.30am when you should get through in minutes not hours.
Tax is really quite easy as we just answer questions on the tax form until we get the right tax outcome (I am sure this is not the way to do it). Basically we don't go for self employed but do say the income is from property and as we are a Furnished Holiday Let we get the benefit of the money being profitable. Also we pay the lower class of voluntary NI that only costs £160ish per year.
The last Government did look to take away the FHL benefits though and I don't know where they got to or how it applies in Scotland.
Hi Mike,
Did you go through the making money from property route?
Kind regards
Derek
@Derek613 Yes we did because that is what we are doing. But if you are a Furnished Holiday Let then it is not the same as a long term rental so some HMRC advisers get confused.
Hi Mike,
So what property do you have?
@Derek613 If you click on my Airbnb profile (picture first) you will see we rent 3 apartments that are attached to our house. All are self contained and we rent them enough to achieve FHL status.
Yes an accountant can help you. Get a few local:online quotes . Worth doing as their advice often saves you money . Either ask for a one off consultation or employ them to help with your accounts @Derek613
who told you to go down the sole trader toute?
Hi Helen,
My friend is an accountant and he said sole trader.
When I spoke to HMRC they said that it's fairly simple to get the tax sorted out.
If you're happy to do the taxes yourself , understand what expenses you can claim etc absolutely go for it. I find my acoubtzbt saves me much more than I spend with them @Derek613
Hi @Derek613 👋
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