Londoners hosts.. Taxes!

Pushpa0
Level 1
London, United Kingdom

Londoners hosts.. Taxes!

I've just started hosting. I had about £300.00 payouts. Do I really have to pay 20/40% tax of the payouts?

 

'You must pay 20 per cent tax on anything above £10,600 earned in the tax year April 2015 to April 2016. And 40 per cent tax is due on earnings above £43,385. Tax on earnings through a company is typically deducted automatically. Extra income must usually be declared through your tax return. If you owe less than £2,500, you can ask for this to be deducted from your pay or pension.'

Read more: http://www.dailymail.co.uk/news/article-4100624/Thousands-AirBnB-eBay-users-hit-tax-raid-Families-ma...

2 Replies 2
Oomesh-Kumarsingh0
Level 10
Pamplemousses, Mauritius

@Pushpa0 I would advice you to visit the nearest tax office in your region and learn the rules before engaging yourself into hosting on Airbnb.Good luck!!!

Jeff158
Level 10
Caernarfon, United Kingdom

Hi Pushpa

As an accomodation provider on ABB you are operating a business and therefore self-employed, requiring you to complete a tax return every year. How much tax you pay depends on your running costs and other income.

You need to keep simple accounts showing income and expenditure.

Contact your local inland revenue office and they will send you some nice forms to fill in.