Taxes

[Jossy0]

some one told me if i reach £ 7500 i should start paying taxes, how do i found out how much tax i should pay. i live in glasgow and airbnb havent told me about taxes. this is my second year hosting. how do i go about finding out?

[Letti0 · Accepted solution]

@Jossy0   As everyone's situation is different you are best off contacting a local accountant to get a consult as to what would be best for you and your circumstances. 

[Jossy0]

thanx Letti.

[Kathie21]

@Jossy0 If your listing is part of your home, you qualify for the first £7000 each tax year being exempt under the 'rent a room' scheme.  Anything over that will be taxable at your marginal rate.  You should be filling out a tax return (SA100) every year if you have any income other than wages which are taxed at source by your employer.  No need to hand over money to an accountant unless you run a business or your situation is complex - but it sounds like you need to educate yourself on basic tax matters, it's not Airbnb's responsibility to tell you.  You can file an SA100 on paper by 31 Oct, or online by 31 Jan (but you need to register well in advance as they send the logon details by post).

[Jossy0]

thank you so much for your advice, 

[Luke112]

Kathie thanks for your well articulate answer but i have a question i work with NHS and am i PAYE where i get my wages and i use one of my room for airbnb where i leave and i do UberEATS as well so will this SA100 form cover me for both extra income that i am getting ? So how do I get this form or will i need to register as a self employed person as well? I am abit confuse as this is my first time i am getting extra income outside my wages. So i really want to get every thing right not to have any issues. Thanks

[Jeff158]

@Luke112 You need to register as self employed, you can have as many streams of income as you wish alongside your paye income. 

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

[Luke112]

Thanks jeff for your prompt and clear answer.

[Kathie21]

@Jossy0   I'm not sure what 'doing UberEATS' means - are you delivering takeways?  That is a completely separate thing from the £7500 allowance for Rent a Room.  If the income is less than £1000pa it doesn't need to be reported. 

If its more, you will need to fill in the Self-employment pages of the SA100 (or the separate SA103S)  and there will be tax to pay.  You can do this online if you register, or on a paper form.  Registration takes about a week as they send your login by post.  It sounds like you should complete a return for the tax year to 5 April 2018  if you do it online you have until 31 Jan, on paper it has to be done by 31st October.  Personally I find it easiest to print off the forms then fill them in while looking at the guidance notes on the screen, then fill in the online form from the paper one! 

For the Airbnb income, if it's more than £7500 (sorry, it is £7.5k now), you will need to complete the property pages/SA105.  Forms and guidance are at https://www.gov.uk/government/publications/self-assessment-tax-return-sa100.  The property pages and guidance are at https://www.gov.uk/government/publications/self-assessment-uk-property-sa105.  Self-employment pages & guidance are at https://www.gov.uk/government/publications/self-assessment-self-employment-short-sa103s

Just so you know, the government is consulting on restricting the £7500 allowance to long term rentals only, as it was intended for people taking in lodgers, not tourists - if they change the rules, only the first £1000 will be tax free (the Property Income Allowance).

[Josie55]

thank you very much cathie for your advice

[Victoria567]

Hiya @Jossy0

As Scots we all Each if us have an annual personal allowance of £11,800 tax free, BEFORE we pay tax.

If your earnings go over this tax free personal allowance you pay tax on the amount after £11,800.

look up, You gov site online.

[Kathie21]

Ah @Victoria567, if ONLY it were that simple!  In addition to your personal allowance of £11,850, you also have a £1000 trading allowance*, plus either a £1000 property income allowance or a £7500 Rent a Room allowance if you are renting part of your home.

*Actually @Jossy0, your UberEATS income may or may nor qualify for that.  Are you an employee or classed as a self-employed contractor?  If the former, it's all taxable (assuming you earn more than £11850 in the NHS)

[Josie55]

thank you victoria