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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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Do i receive any tax relief on earnings made through letting

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Do i receive any tax relief on earnings made through letting out rooms in my house through Airbnb?

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Please expand on your statement "Do i receive any tax relief on earnings made through letting out "

are you referring to offest expenses against letting income?

Many thanks

Customer: replied 3 months ago.
I thought there is a £7500.00 tax free allowance for letting rooms in your own home? and if this is the case do I also deduct expenses incurred?

Thank you for your reply.

If your letting income is less than £7,500 for tax year 2017-18, you can opt for rent-a-room relief. You can't also deduct expenses incurred if you go this route.

If your rental income is in excess of £7,500 then you can elect for accounting for it on alternative basis whereby you deduct expenses relating to letting and pay tax on net income received from letting.

More information on rent a room relief is covered here

http://www.taxvol.org.uk/about-tax/rent-room-relief/

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 months ago.
I earned £13500.00 form Airbnb. Does this mean I can use the £7500 tax relief and also deduct the expenses incurred?

Thank you for your reply..

You can offset the tax exempt amount of £7,500 from gross rent received but you can't also deduct the expenses incurred, I'm afraid.

If your expenses against the income are less than £7,500 you are better off claiming the tax exempt relief of £7,500 against gross rental income.

I hope this is helpful.

Customer: replied 3 months ago.
Perfect. Thank you for your help.

Thank you for your reply.

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