Hello Everyone, I am seeking advice. I have started renting out my house as an Air &B this week. I am on the state pension and i am wondering how much i can earn before i am be taxed?
AFAIK the rent-a-room tax credit does NOT apply when you do AirBnB, so assume all that income is taxable. If you are over 65, there are 2 ways to calculate your liability (whichever is more favourable)
1) anything up to 18k tax free, but everything over that is taxed @40% OR
2) everything up to your standard band (single or married) @20%, balance @40%, less your tax credits
Thank you for your replies, i am new to all this and just unsure as to what to do. I am single and on the state pension. the house will be let for the second half of july and August and perhaps the odd week for the rest of the year if there is demand, but unlikely. I am wondering the 18K tax free dose that earning include the pension as well as the earning outside of pension? I have spent quiet a bit of money getting the house ready so i assume i can maybe get relief on some of that . I have no other income outside the pension this is my cushion to get through the winter
The rent a room definitely doesn’t apply to AirBnB
I’m not sure on relief on the money spent getting the place ready, but I have a feeling that you can’t claim relief on anything spent before you start renting it. Hopefully I am wrong and someone can clarify.