tax in England

[Darel0]

Hello,

 I'm an italian guy that lives and works in England. I'm am the owner of an house in Italy and I would like to rent it via Airbnb during the summer.

I'm going to receive the payments in my bank account in England, so I would like to know if the money I will earn from hosting will be subject to tax (it will be a little amount, less than 7,000 £). Should I declare it as income and how much I have to pay for it ?

thanks a lot for help me

Darel

[Dave-And-Dee0]

Hello @Darel0,

I am from New Zealand and I pay tax at a certain rental income threshold. 

For the UK here is the information you need to know: https://www.gov.uk/renting-out-a-property/paying-tax

Below is an excerpt from this webpage...

But 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

So in summary yes, it looks like you do.

I hope this helps and all the best with your Airbnb rental.

Cheers,

Diamond Dave

[Jane556]

But you owe tax first in Italy. That part I've checked out for sure. Then you can declare it in whatever other countries you need to and it will hopefully offset any tax owed there. I will pay in Italy and report in two other countries (being a US citizen living abroad). 

[Cormac0]

@Darel0

B.T.W.

Airbnb will only allow you bill in euros (as your property is in Italy) not sterling, so when you're doing your pricing be cognisant of this, if you have a Euro account in your English Bank there will be no problems otherwise it will be a complete mess.

[Jeff158]

@Cormac0

Not quite right pal, it depends where your bank has your registered address.

can-i-choose-my-payout-currency

[Cormac0]

@Jeff

It's good to talk...

Riddle me this Jeff, my Polish bank has my registered address as the Republic of Ireland and I have a Euros account in my Polish bank, Airbnb still decided that I should charge zlotys on my Airbnb activity.

[Jeff158]

@Cormac0 ah but are your abb account settings in zlotys. I believe that cocks things up a bit, although I could be talking though my arse, it wouldn't be the first time.

[Cormac0]

@Jeff

I think most people's arse can't do prodigious things occasionally as you describe.

I’m surprised Jeff, you have not noticed Airbnb’s amazing propensity for bureaucracy, reminiscent of an eastern European state.

I lost a not inconsiderable amount of money on my first Guest, as Airbnb told me that I would be paid in zlotys and proceeded to display my Euro fee as a zloty fee, rather than being paid Euros 50 per night they charged zlotys 50 per night or over four times less.

So rather than telling the host what they require if they wish to be paid in a specific currency, we have in my opinion a system equivalent to a dog's dinner, and if you have been reading these blogs as long as I have, you’ll will realize this is not the first time hosts have been caught out by Airbnb convoluted processes.