UK Tax Compliance and Rent and room allowance

[Emilie813]

Hi all, hoping you can help me. I just found out that the tax responsibility for an Airbnb property lies solely with the host on the listing and can't be shared with the co host. Therefore if a husband and wife run the Airbnb together all the tax liability will be on one person. 

Is this correct?

If so it has a big impact on rent a room allowance as only £3250 could be claimed as tax free, rather than the full £7500.

There doesn't seem to be a way to change the name of the host to become joint hosts and therefore share the tax liability (and benefit of the rent a room allowance)

Anyone know how to deal with this?

Thanks!

[Mike-And-Jane0]

@Emilie813 whilst Airbnb will report the earnings for your listing to HMRC in the name of the host  the actual thing that matters is who is responsible for the tax as per HMRCs rules.

As such if it is a FHL then the earnings can be diverted to whichever owning party you like. For long term lets the earnings have to be shared as per the ownership shares of the property. For renting a room I think it has to be split by ownership of the house with each party getting a £3750 allowance but you need to go on gov.uk and check the rules.

[Elisa]

Hi @Emilie813 😊

Have you managed to find this information?

Thank you @Mike-And-Jane0  for sharing your thoughts about this situation! 

Let us know if this helps! 🌻

[James4479]

Hi @Elisa - I have a similar request. If I host the property but me and my 2 brothers are each renting our rooms at the same time. who/where do I explain this to airbnb / HMRC that the tax liability needs to be split between 3 of us and not just the 1 person hosting (me) 

[Elisa]

Hi @James4479 😊, 

Thank you for asking this question!

The best way to get an answer is to post it in the community by starting a new conversation here. This way, other hosts will see your question and be able to help.

Let me know how it goes!

Warm regards, 🌻