UK tax liability - personal income


I’m a UK host and looking for some advice. I rent out our annex cottage on Airbnb and it is my only source of income. Can I claim the income earned as part of my personal allowance or do I have to put it through HMRC as Property Income?

Look forward to hearing from the experts!

Hi Adam

Really not sure on this. Have you called the HMRC helpline to check.

I would imagine you would put it down on your tax return as personal income but you are best to ask them directly.

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I’d be inclined to agree with this from @Helsi. If HMRC can’t help it’d definitely be worth getting an opinion from a tax accountant.

Is the annexe cottage integral to or seperate from your own own? I’d it’s integral you can use the Rent-a-Room scheme which would automatically allow you to earn £7500 before tax is payable.

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Thanks for your comments @Helsi and @Jamjsco… I’ll give the HMRC helpline a call when I’ve a few hours to kill lol!! The annex is separate from our main house.

It’s difficult for anyone here to advise you as tax very much depends on your personal circumstances.

If you find the HMRC too taxing (see what I did there) then I agree probably worth getting a one off consultation with an accountant for advice.

A bit of an update on this… contacted HMRC and they informed me that if my Airbnb income is my only income then I can earn up to the current personal allowance without paying tax :slight_smile: Happy Days!