Tax

[Helga226]

Hello there. Does anybody advise on what the taxes are if someone hires a place on Bnb? Tk you

[Mike-And-Jane0]

@Helga226Aassuming it is a UK host:  If the host is not VAT registered the only tax is VAT payable on the Airbnb service fee. If the host is VAT registered then VAT is payable on the whole rental fee and the Airbnb service fee.

Can I ask why you are asking? If a host hasn't set up their listing correctly then they should take the VAT hit.

[Helga226]

Hi @Mike-And-Jane0  thank you. I am asking because i read somewhere that you only need to declare what you receive net if you host   once you make a certain amount per year. 

[Mike-And-Jane0 · Accepted solution]

@Helga226 I fear you have been mis-informed.

Any self employed income over £1000 I believe needs to be declared. Also I believe you need to declare gross earnings and then expense the Airbnb fees.

Its not all bad though - Once you are self employed you can build up your state pension by paying voluntary NI contributions at an extremely low level (£180/yr or so)

[Helga226]

Thanks for your advise. 😉