UK tax and what to declare with airbnb hosting:

[Noah217]

Hi - can any UK-based host confirm about taxes and airbnb? I'm self-employed and I've watched the official HMRC video about lettings and how to declare tax (https://www.youtube.com/watch?v=t4D6laIomJg). However, none of the three categories seems to fit! I rent out my whole home - it's not an investment property, not a furnished holiday let, and not rent a room. Does anybody else in the UK rent out your whole home a few times a year? Do you declare income under 'Property' or just as ordinary income? Second question - as I understand, there's a 1k tax allowance on property. Does that mean, e.g. you earn 3k in a given year, that you declare 2k? If anyone can help, I'd be incredibly grateful. It's surprisingly complicated! Thanks.

[Helen3]

I'm a home share host so not sure . In your situation I would ask your accountant @Noah217 

[Helen3]

That's clearly not an HMRC video @Noah217  it's one posted by a private company as it says on their youtube channel.

Try https://www.gov.uk/government/organisations/hm-revenue-customs

Why do you feel your place is not a furnished holiday let when you let out a furnished property for holiday rentals?

Don't forget the 90 day limit in London.

[Noah217]

Thanks, @Helen3 . That's a great point! I assumed that furnished holiday let wouldn't include a place which is also a primary place of residence - but why not?! You may be quite right about that.

The video was actually recommended by HMRC (I think - as I recall, they offer the link on the HMRC website).

I was hoping to do the tax return without an accountant, but if I remain unsure, I will need to get someone! Or call HMRC to double-check.

Thanks very much for your advice. Appreciated.

Best,

Noah

[Helen3]

Personally I use an accountant for my self employed work I have neither the time or knowledge to do my accounts/tax return and I find I save more money then I spend with them because of the advice they provide.

A good accountant is worth their weight in gold. 🙂

Please don't rely on my thoughts around categories for your property for tax properties I am not an expert as I don't have a whole listing:)

@Noah217 

Public bodies like the HMRC don't normally recommend private sector companies  in terms of content, but hopefully the video content was useful 

[Mike-And-Jane0]

@Helen3 @Noah217 A Furnished Holiday Let has a specific Inland Revenue definition that means it has to be available to rent for 210 nights a year and actually rented for 105 nights a year with no rental exceeding 30 nights. As such Noah does not sound like he is a Furnished Holiday Let.

I would advise calling HMRC. I will be doing so tomorrow as I am struggling with a tax return and they are usually very helpful.

[Mike-And-Jane0 · Accepted solution]

@Noah217 the following appears to apply to you:

Property you personally own

The first £1,000 of your income from property rental is tax-free. This is your ‘property allowance’.

Contact HM Revenue and Customs (HMRC) if your income from property rental is between £1,000 and £2,500 a year.

You must report it on a Self Assessment tax return if it’s:

• £2,500 to £9,999 after allowable expenses
• £10,000 or more before allowable expenses

I have no idea why you need to contact HMRC if you earn between 1 and 2.5K per year!

[Noah217]

Thank you so much! That all makes sense.

Do you happen to know from experience whether it is declared as 'Property and Land' in a Self Asssessment tax return (as opposed to just being lumped in with other income but not specifically differentiated)? That's my final question, I promise 🙂

Thank you again.

[Mike-And-Jane0]

@Noah217 No idea. It sounds like Property but this may open a whole new can of worms with respect to capital gains tax when you sell your house. You really will have to call HMRC!

[Noah217]

Thanks! Yes. I'll call - no way around it! 🙂

Thanks again.

[Mike-And-Jane0]

@Noah217 Please DO NOT call HMRC. I have been on hold for 25 minutes and counting and I fear you are making my wait longer! If you are behind me in the queue I apologise for making your wait longer.