Everyone loves Airbnb. It’s a wonderful way of seeing the world on a budget and the South West of England is no exception to that. The brand will undoubtedly be big business as we approach this summer season in this part of the world.

The sudden growth of Airbnb has taken the world by storm as people start putting their spare rooms, caravans, converted barns and even whole houses to some profitable, good use. But what are the tax implications? Are you going to be stung by HMRC? And what’s the best way of holding on to what you’ve earned using the assets that you already own?

Here at Whyfield, we’re very experienced in advising on your holiday lets. We say, don’t panic! The rules surrounding this are easy to understand and are actually flexible enough to make sure that you keep hold of that hard earned income.

In simple terms under the HMRC Rent a Room scheme, individuals can earn up to £7,500 each financial year without paying any tax on it. This is on top of any Tax Free Allowance linked to normal earnings that you may or may not have.

So, as Airbnb fever takes hold while we approach the summer season, make sure you keep aware of the tax implications and whatever you do, don’t pay the taxman any more than you have to.

Our Director, Roxane Neave says: “Cornwall and the South West remains hugely attractive to holidaymakers from the UK and abroad. As a result, the tourist market plays an important part in the local economy. Airbnb as a brand is expected to play an increased role in that economy during this coming season and it’s important that people understand the tax implications of renting available space out in this way. It’s our job to advise people on the best way of working within the rules to reduce tax bills.”

If you have any questions about renting your space for holiday use, our team can clear things up for you. Get in touch to find out more.