UK tax liability - personal income

1

Hi

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!
Cheers
Adam

2

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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3

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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4

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.

5

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.

6

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!

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