Airbnb gives its landlords tax tips to satisfy HMRC

Airbnb has taken further steps to get in the good books of HMRC by issuing a guide on tax for its landlord hosts.

Since January 1 Airbnb and other short let platforms have been required to send data on their clients’ earnings to HMRC, as part of a deal struck over a year ago. 

Now it has issued a comprehensive guide to landlords ahead of the Revenue’s self-assessment deadline, but including a wide range of possible taxes and reliefs that may apply to different landlords according to circumstances. The guide’s main points are:

Know your taxes - it says that as a Host on Airbnb, you pay Rental Income Tax. Your income tax band is determined based on your regular income plus any rental income earned from hosting, minus your expenses (e.g. the costs you incurred hosting your property). 

It gives details of differing income tax levels across different parts of the UK, plus the National Insurance situation. It also outlines the position on CGT, VAT, council tax and business rates.

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Use Allowances and Tax Relief - this section covers the government’s rent-a-room scheme, Property Income Allowance, Trading Allowance, Entrepreneur’s Relief, Rollover Relief, Capital Allowances and small businesses Rate Relief.

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Claim Your Expenses - this includes details on landlord’s insurance, cleaning and gardening services, accountant fees, marketing costs, ground rent and service charges if appropriate, agent’s fees, utility costs, and mortgage interest.

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Now Your HMRC Deadlines and the risks of fines and penalties - this section gives filing deadlines, details of penalties, and information on how Airbnb landlords can access their own records to verify their earnings over a given period.

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You can see the Airbnb guide in full here.

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