HMRC unclear

[Bryan934]

Hi everyone 

I use Airbnb to rent one room out 

I have a full time job and just use the Airbnb money as extra for pin money 

do I need to do a self assessment form or just sign up for the rent a room scheme 

please help as HMRC don’t help 

[Rebecca]

Hello @Bryan934 👋

Great question! I'm going to tag some hosts from the UK that may be able to offer some help: @Abi010, @Beverley120 and @Livia120, I hope you don't mind me tagging you here, but I wondered if you had some advice or guidance for Bryan about self assessments or the rent a room scheme? 

Thank you so much in advance for your support. 😊

[Bryan934]

Thank you Rebecca 

[Beverley120]

Hi @Bryan934,

The rent a room allowance is really sensible.  You don't need to claim it.  As long as you earn less than £7500 a year from the room just record how much in case you are asked.  If you bring in more than this then you have to declare it, but you can start offsetting expenses above this as well.  I don't think it's worth the hassle, so I just stop when I'm near the limit.

Hope this helps, Beverley!

[Bryan934]

Thank you for the advice @Beverley120 

do you have to sign up to the rent a room scheme?

I have registered for self assessment which I’m guessing I don’t need now 

thanks

[Beverley120]

No registration, no self-assessment required, as far as I am aware. I think Martin Lewis (Money Saving Expert) campaigned for it and, iirc, there's guidance about it on his website. 

[Mike-And-Jane0]

@Bryan934 My understanding is that as long as the total revenue (probably including Airbnb fees) is under £7500 per tax year then you don't have to do a return. That said a tax return only takes about 20 minutes.

I don't think you 'sign up' for the rent a room scheme you just do it.

I should however suggest you check if your house insurer and any mortgage company is OK with what you are doing. Plus you will need a fire risk assessment amongst other things.