VAT help!

[Richard170]

I'm a host in Berkshire, England, and was under the assumption that I don't have to pay tax on my Airbnb earnings if I earn less than around £6k-7k in a finanacial year. Can anyone confirm if this is correct or point out if I'm wrong?

Bit of a boring post, I know, but important to get right.

[Helen3]

Hi Richard 

Lots of information available about this online. A quick search on Google brings up these.

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

https://www.moneyadviceservice.org.uk/en/articles/rent-a-room-scheme-how-it-works-and-tax-rules

https://www.theguardian.com/money/2015/jul/13/rent-out-your-spare-room

By the way this has nothing to do VAT - this is personal tax payable on your income.

[Victoria57]

@Richard170 it depends what your other earnings are. If your Airbnb earnings and any other income are above the £11k personal threshold then you will pay income tax on any amount over that. Don't forget that anything you buy specifically for the B&B (food, newspapers, loo rolls...) and 10% for depreciation - the last time I looked - can be offset. We use a prepaid cash card for everything we buy for the B&B so we know exactly what has been spent which makes it easy when we complete the self assessment form. Even if your total income from all sources was below the threshold it would still be wise to declare it on a self assessment form. If in doubt get professional advice.