Inquiry Regarding Airbnb Licensing and Taxation in the Cotswolds

[Charbel11]

Dear All,

I hope this message find you well.

I am in the process of purchasing a cottage and I plan to rent it out on Airbnb. Before I start, I want to ensure that I am in compliance with all local regulations and requirements, and I would appreciate guidance on the steps I need to take to obtain any necessary licenses or permits.

Additionally, I am interested in understanding the taxation obligations associated with operating an Airbnb rental property in this area. Specifically, I would like to know:

1. What are the tax obligations for Airbnb hosts in the Cotswolds?
2. How is the income from Airbnb rentals taxed, and what is the applicable tax rate?

I understand the importance of complying with all tax regulations and responsibilities as a responsible host, and I want to ensure that I fulfill these obligations correctly and in a timely manner.

Your guidance on these matters would be greatly appreciated.

Thank you,

[Mike-And-Jane0]

@Charbel11 A few thoughts:

1) Some local councils seem to want planning permission before you can Airbnb a property. You'll need to talk to your local council to see if they are one of these. Generally no planning permission is needed across England but there are anomalies in high tourist areas.

2) If you rent for more than 65 (I think) nights per year you will need to talk to the VOA (valuations office agency and apply for business rates. Depending on many factors this may make your rates zero.

3) If you rent for more than 105 days per year you will qualify as a Furnished Holiday Let. This allows you to contribute some earnings into a pension, offset mortgage interest against earnings among other goodies such as you deciding what portion of rent is taxably you and what portion by your co-owner (if you have one). Search for FHL on gov.uk to get the full story.

4) Keep your earnings below £85,000 per year to avoid having to register for VAT

5) Get an accountant (or do a lot of research) to understand what expenses you can offset against tax.

6) Income net of expenses is just added to your other income and taxed via the self assessment system