U.K. Tax

[Lynn60]

I am renting an annex on Airbnb. Can anyone tell me what my tax threshold is please? Have found info on this for room in house (£7,500) but not on a separate dwelling. This is my only income but property half owned with husband who is a tax payer.

any thoughts would be greatly appreciated.

thanks

lynn

[Victoria57]

@Lynn60 you will need to take professional advice but the current UK personal tax threshold is £10,600 so if your Airbnb income is your only income and is below this then you wouldn't have any tax to pay. You are right about the rent a room allowance of £7,500 but this will not be relevant due to you having no other income. It might not be relevant also depending on depending on whether the annexe is considered a separate property as it has to be a room in your main family home as far as I recall. I would keep your income and tax affairs and that of your husband separate or there will most likely be a tax liability on the Airbnb income as it will be added to his income. You will need to do a self assessment tax return and make sure you keep receipts for everything you spend on the Airbnb as you can offset this against tax including 10% for wear and tear. We use a pre-paid card specifically for this expenditure so it is separate for normal family expenditure and can be itemised easily. But I would get a tame accountant to talk you through all this.

[Lynn60]

Thank you so much for your advice. I will speak to an accountant but you have definitely been helpful.

[Lisa293]

@Lynn60

Find out from the accountant if 50% of the income should be declared by your husband as a 50% owner.  Ask the accountant if you can draw up a rental contract with your husband to rent his 50% for a nominal monthly fee.  This would prove you were entitled to 100% of the income.  Your husband would have to declare his monthly "rent" from you but you may be able to redistribute the bulk of the income as yours if he is technically supposed to claim the 50%.  

[Lisa293]

@Lynn60

Just occurred to me, if this is not possible, find out if your husband can pay you a salary for your management and cleaning.  This may also help to redistribute the income.

[Lynn60]

Thanks so much for your advice, will definitely take this info to an accountant.

[Annie360]

Hi all, what i,m not sure of tax wise,is the £7.500 room allowance on top of your annual tax allowance of £11,700 (if thats what it is roughly) or can you only claim one or the other. I keep getting different opinions.

Thanks for any advice in advance.