UK Tax for house owned by multiple siblings

[James4479]

Hi, me and my 3 siblings will air bnb the house out over Christmas and wondering about tax advise
How do we share with Airbnb that the earnings /income need to be split between 4?
do we qualify for rent a room scheme?

and how much is the tax allowance

[Mike-And-Jane0]

@James4479 If you live in the house and rent a room then you will qualify for the rent a room scheme. However it doesn't sound like that is what you are doing so I don't believe you will qualify.

Before you start though I would advise you to do more research as tax is likely to be the least of your problems. Far more important are Insurance and Fire. Does your insurance company allow you to Airbnb the house and do you meet the fire protection requirements of your Fire Risk Assessment?  Do you even have a Fire Risk Assessment I wonder....

[Emilie]

Hi @James4479, 

What an exciting project to take on with your siblings! Do any of you have experience in hospitality or will it be a first?

In addition to Mike's advice, I wanted to share this Help Center article which might be quite handy ahead of starting out: Responsible hosting in the United Kingdom

I also thought it might be worth asking a few more hosts in the UK if they have any more insights on this matter: @Livia120 @Helen3 @Chamitha0 @Beverley120 @Abi010 - do you have any additional suggestions perhaps?

Thanks everyone 🙂

Emilie
 

[Helen3]

Rent a room is for those sharing their home with a guest @James4479 

The tax you will be liable for depends on each siblings individual tax situation. You need to declare as self employed income.

as @Mike-And-Jane0 says are you compliant with regulations?

[Abi010]

As  advised by the other host, Helen 3, and Mike-And-Janeo are right, if you all feel  yearly tax assessment, it will need to be added as income, but with rent a room scheme, you don't need to declare it, unless it is over £7,500, on the assumption that it is your main residence that you are sharing with the guest.

Hope it helps