Airbnb income Tax

Income from Airbnb or any other short-term rental, must be reported to HMRC if the total amount you receive from it in a tax year, is more than £1,000.

To pay tax, you’ll need to register for Self-assessment by 5th October following the end of the tax year that you need to report income for.

To calculate taxable profit, you can deduct from your income £1000 allowance or allowable expenses if your expenses were more than £1000.

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There are special rules for Furnished holiday lettings, to qualify :

• Total of letting exceeding 31 days, can’t be more than 155 days in the year.

• Property must be available for more than 210 days a year, you can’t stay in the property in that time.

• All properties are treated as one business and must meet above conditions.

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If you don’t qualify, you can claim expenses for :

• general maintenance and repairs to the property, but not improvements

• costs of services, including the wages of gardeners and cleaners

• water rates, council tax, gas and electricity

• mortgage interest – depending on the circumstances

• accountant’s fees

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