Frequently asked questions
How does TAXES work for hosts?
In terms of paying taxes, the same rules apply as to any other business. In other words, money you earn from hosting is income and therefore subject to tax.
If you’re renting out your primary or only residence, you can benefit from the rent-a-room allowance, which allows you to earn up to £7,500 per year without having to declare it or pay tax on it*. You must complete a tax return if you earn more than the threshold, and income tax will have to be paid. On the other hand, if you're a landlord and Airbnbing a property that isn’t your primary or only residence, the same rules apply as if you were letting out your property long-term.
If you don’t have an accountant or an agent managing your property, make sure to keep accurate accounts of income for tax purposes in case you need to declare the earnings from your property when filing your annual return.
*(As of August 2017)