My life as an Airbnb Host What I've learned from hosting and how I make money using Airbnb

CategoryAirbnb Taxes

What taxes do you need to pay being an airbnb host?

Airbnb Income tax and the Rent a Room allowance


If you have an airbnb in your home then there are two ways to handle your Airbnb taxes. One uses the Rent a Room Allowance. The other involves calculating your airbnb income and deducting allowable expenses. How to use the Rent-a-Room scheme  The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home You can earn £7500 a year from airbnb and pay no tax (assuming you receive no other similar rent which might blur the picture such as an adjacent granny flat). If you own buy-to-let property this is separate to these...

My friend wants to start a airbnb business- What I told him…


It’s November in London and its getting dark at 4:30pm and the temperature is getting lower by the day. Apart from a few very warm days it was a generally wet and grey summer this year. My airbnb was full most days apart from the occasional empty room on a Sunday (to be honest its nice to have a day guest free day sometimes). My prices are as low as ever and it doesn’t seem likely to change any time soon. My competition in East London seems to have increased in my area over the last 5 years I have been a airbnb host, and is probably one of the reasons why my prices are still so...

Airbnb hosts are not affected by the new buy-to-let tax rules


Have you heard of the new rules regarding the tax deduction on mortgage interest for buy-to-let (otherwise known as an investment property to the rest of the planet) in the UK? The recent announcement by the UK government that tax relief is going to be limited to 20% has just been made clearer by some of the details. You can read this article in the Telegraph for further details:  The main point is Airbnb hosts could be exempt from the new rules and still be able to claim the full tax deduction. This will come as some relief for many an airbnb host including me. The general reason for this is...

The UK emergency budget July 2015 and how it affects Airbnb Hosts


There were some changes in the UK emergency budget this year that took many by surprise including me. The changes are not directly aimed at Airbnb hosts but will affect anyone who derives an income from property in some way. 1. The increase in the rent a room tax free allowance from £4250 to £7500 a year from April 2016 is excellent news for Airbnb hosts. Hosts earning £7500 or less will not need to declare any income to HMRC. 2. The end of the 10% wear and tear allowance for landlords (a non-cash deduction on gross rent) will end in April 2016. 3. A phased withdrawal of tax relief on...

Do I need to pay tax on my income from Airbnb?


Hotel Tax In the UK there is currently no hotel occupancy tax and to my knowledge no intention to introduce one. VAT  VAT is payable on Airbnb’s service fee (collected by Airbnb at the time of booking so nothing for you to do here) but no VAT is currently chargeable on rent in the UK. If such a time comes the government decides that money earned from Airbnb is no longer rent but a service fee then VAT may become payable. Income Tax Income tax is payable on any earnings in the UK. The same applies in most developed countries. You are kidding yourself if you think that profits earned from...

What will Airbnb charge me as a host?


Airbnb takes a commission for every booking your listing has. However how much of a cut depends slightly. What fee do Airbnb hosts Pay? Airbnb says it takes 3% of the hosting fee plus VAT (in the UK 20%) so If you charge £100 per night then the hosting fee will be £3.30. See here for more details on Airbnb help section. note – Airbnb will round up it’s figures so if your hosting fee is £6.60 this will be rounded up to £7. Airbnb guest fees The guest also pays a fee of 0-20% of the total price called the guest service fee. Which listing pay 0% and which pay 20% you ask? I am not...

My life as an Airbnb Host What I've learned from hosting and how I make money using Airbnb

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