How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15975
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

My wife and I rent a room out on airbnb. We made £7101 in the

This answer was rated:

My wife and I rent a room out on airbnb. We made £7101 in the last tax year. We will utilise the £4250 rent a room allowance leaving £2851 taxable. My wife and I jointly own the property which is our main and only residence. I am on higher tax rate (40%) and my wife is on lower (20%). What tax do we pay on the £2851? Can we assign it all to my wife to pay lower rate and thus minimising the tax we pay, or do i pay 40% on half and she pays 20% on half of the £2851?

Unless the property is owned in proportions other than 50:50 and you inform HMRC of that fact using a form 17, then the income should be split on a 50:basis. You will each pay tax at your respective rates on your respective shares of the income. On 50% of £2,851, you will pay tax of £570 and your wife will pay tax of £285.

I hope this clarifies your position. Let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you