This is the first time I've used this Community forum so I hope it works!
We own a 2nd property that we rent out only through Airbnb as a holiday let where our guests have the whole house. I do our own HMRC self-assessment for Income Tax but wonder if I am offsetting some bone fide expenses correctly.
I already offset all utility bills, insurance, Airbnb charges, Welcome pack, cleaning materials expenses - ie. all expenses that I can provide a receipt for. But - how do I deal with things like - laundry, ironing, my admin time at home dealing with bookings etc? These all seem to be realistic expenses but very difficult to work out a figure to use. We do all the changeovers ourselves and don't use any agencies or cleaning staff.
Does anyone in the UK do their own accounting books and can give me any advice?
Thank you - Gilly
1) You cannot charge your time. And even if you did it would be a zero sum game as you would then be taxed on these earnings.
2) I think you can allocate some of your electricity/water if you launder at home.
4) You should be able to offset mileage for getting to the holiday let to service it
5) Is it classed as a Furnished Holiday Let? If so I believe you can allocate the income to whichever partner you like in any proportion you like to maximise their tax free allowances
6) If its a FHL you should be on business rates and will probably benefit for small business rates relief (ie zero rates).
Hope this helps