Maxwells Chartered Accountants’ Post

Obligations as an AirBnB Host As an Airbnb host in the UK, you have certain tax obligations that you must fulfill. The income you earn from renting out your property on Airbnb is taxable, and you must declare it to HM Revenue and Customs (HMRC). If you’re an occasional host, renting out your home or spare room for a few nights a year, you might not have to pay tax on the income you earn. However, if you’re a regular host and make a profit from renting out your property, you’ll need to pay tax on that income. There are two ways to declare your income to HMRC: self-assessment tax return or rental income allowance. If your Airbnb income is less than £1,000 per tax year, you can use the rental income allowance and won’t have to declare your income or pay tax. However, if your income is more than £1,000, you’ll need to complete a self-assessment tax return and pay income tax on the profits you make. Additionally, you might also have to pay council tax, business rates, and VAT, depending on your circumstances. It’s essential to check with your local council and HMRC to ensure you’re meeting all your tax obligations. In summary, as an Airbnb host in the UK, you have tax obligations that you must fulfill. Ensure you understand your tax obligations and declare your income to HMRC to avoid any potential penalties. If you have already fallen foul, it is possible to make a disclosure under the best possible terms to HMRC under the Let Property Campaign. For more help with your obligations or the Let Property Campaign, get in touch with the team at Maxwells https://lnkd.in/eW8chm3

Obligations as an AirBnB Host As an Airbnb host in the UK, you have certain tax obligations that you must fulfill. The income you earn from renting out your property on Airbnb is taxable, and you must declare it to HM Revenue and Customs (HMRC). If you’re an occasional host, renting out your home or spare room for a few nights a year, you might not have to pay tax on the income you earn. However, if you’re a regular host and make a profit from renting out your property, you’ll need to pay tax on that income. There are two ways to declare your income to HMRC: self-assessment tax return or rental income allowance. If your Airbnb income is less than £1,000 per tax year, you can use the rental income allowance and won’t have to declare your income or pay tax. However, if your income is more than £1,000, you’ll need to complete a self-assessment tax return and pay income tax on the profits you make. Additionally, you might also have to pay council tax, business rates, and VAT, depending on your circumstances. It’s essential to check with your local council and HMRC to ensure you’re meeting all your tax obligations. In summary, as an Airbnb host in the UK, you have tax obligations that you must fulfill. Ensure you understand your tax obligations and declare your income to HMRC to avoid any potential penalties. If you have already fallen foul, it is possible to make a disclosure under the best possible terms to HMRC under the Let Property Campaign. For more help with your obligations or the Let Property Campaign, get in touch with the team at Maxwells https://lnkd.in/eW8chm3

Obligations as an AirBnB Host As an Airbnb host in the UK, you have certain tax obligations that you must fulfill. The income you earn from renting out your property on Airbnb is taxable, and you must declare it to HM Revenue and Customs (HMRC). If you’re an occasional host, renting out your home or spare room for a few nights a year, you might not have to pay tax on the income you earn. However, if you’re a regular host and make a profit from renting out your property, you’ll need to pay tax on that income. There are two ways to declare your income to HMRC: self-assessment tax return or rental income allowance. If your Airbnb income is less than £1,000 per tax year, you can use the rental income allowance and won’t have to declare your income or pay tax. However, if your income is more than £1,000, you’ll need to complete a self-assessment tax return and pay income tax on the profits you make. Additionally, you might also have to pay council tax, business rates, and VAT, depending on your circumstances. It’s essential to check with your local council and HMRC to ensure you’re meeting all your tax obligations. In summary, as an Airbnb host in the UK, you have tax obligations that you must fulfill. Ensure you understand your tax obligations and declare your income to HMRC to avoid any potential penalties. If you have already fallen foul, it is possible to make a disclosure under the best possible terms to HMRC under the Let Property Campaign. For more help with your obligations or the Let Property Campaign, get in touch with the team at Maxwells https://lnkd.in/eW8chm3

How to take Airbnb tax deductions as a host. https://ow.ly/7oz150TQsL1 #Taxes #TaxHelp #FilingTaxes

The No. 1 Tax Strategy for New and Veteran Airbnb Host is performing cost segregation studies. These can help you speed up losses from your rental properties, which can be a big win for your wallet. As a tax advisor who specializes in helping Airbnb hosts I wanted to share a powerful tax strategy that can significantly reduce your tax bill and save you money. Here’s the details: Normally, you depreciate a building over 27.5 years for residential or 39 years for non-residential. That’s a long time to wait for your money back. But with a cost segregation study, you break that building into different parts and speed things up: 5-year (personal property)  15-year (land improvements)  27.5 (Residential) or 39-year property (Non-Residential) Why does this matter? Why should you care? Because anything that depreciates in less than 20 years qualifies for BONUS DEPRECIATION. Translation: you get to write off a huge chunk of your costs right away. And in 2024, you can still grab 60% bonus depreciation. From 2018 to 2022, we had 100% bonus depreciation, but starting in 2023, it’s going down by 20% each year. Here’s where it gets even better: If you qualify as a Real Estate Professional (REPS) or meet the STR rule (100 hours), you can use these losses to offset your earned income taxes. This means you could lower your overall tax bill significantly. Important Note: There is a potential downside called depreciation recapture, where you might have to pay back some of the tax benefits depending on when you sell the property. This is why it's SUPER important to meet with a tax advisor to make sure you execute this strategy perfectly and understand all the details. Not everyone will benefit the same way from these studies, so make sure to chat with your tax advisor to see if it makes sense for you. Your tax dollars are worth more now than later! Saving more money now allows you to reinvest and expand your portfolio faster. Tag a fellow host below that could benefit..

As we look ahead to 2025, significant changes are on the horizon for taxpayers investing in Furnished Holiday Lets. The current tax regime is set to become a thing of the past, impacting operators of traditional holiday cottages and Airbnb hosts. Find out more in the latest blog from my colleague Graeme Hills, Head of Tax at Duncan & Toplis -https://okt.to/KEWeVp #WeAreDuncanToplis #FurnishedHolidayLets

As we look ahead to 2025, significant changes are on the horizon for taxpayers investing in Furnished Holiday Lets. The current tax regime is set to become a thing of the past, impacting operators of traditional holiday cottages and Airbnb hosts. Find out more in the latest blog from my colleague Graeme Hills, Head of Tax at Duncan & Toplis -https://okt.to/uJCZ7q #WeAreDuncanToplis #FurnishedHolidayLets

Important Update: FHL Tax Changes from April 2025! Are you the Landlord of a short-term holiday let? This includes properties rented via Airbnb. Furnished Holiday Let (FHL) tax regime will be changing from April 2025. It is worth remembering that Airbnb (and other organisations) are already required to provide HMRC with details of bookings through their system – so HMRC will know! What does this mean for you? • Your short-term holiday let, will lose the tax benefits over standard rental properties. • Your FHL income and gains will be treated for tax like other property income from April 2025. This includes Income Tax, Corporation Tax and CGT (Capital Gains Tax). What is classed as an FHL? • A property available for short-term let for 210 days/year, and let for 105 days/year. • Not used as long-term let for significant periods. Need help navigating these changes? Call us on – 01509 816150 or visit https://buff.ly/3kagk1N #FHL #FHLtaxchanges #airbnb #propertylet #holidaylets

Furnished Holiday Lettings Accountants Guide: Everything You Need to Know in 2024 If you own a furnished holiday let (FHL) in the UK, the tax rules and financial responsibilities differ from those of regular rental properties. As the owner, staying compliant with HMRC regulations is crucial to avoid unnecessary penalties and maximise your tax benefits.

The Furnished Holiday Lettings change: One tax expert is advising anyone involved in the furnished holiday lettings sector to ‘act now’ ahead of upcoming tax changes. ⬇️ #holidaylets #airbnbhost #holidayhomes