Sorry maybe I should have been clearer. The individual is renting these properties and then sub-letting them via AIRBNB so effectively they are operating as a property letting company I would imagine and therefore subject to VAT thresholds etcIf it's an individual then it's income tax that will be payable on the rental income, unless missing something? How would an individual register for VAT?
Cremegg why are you adamant that E&Y are wrong in this instance?
I see your argument but I disagree. Surely its just as easy for one to claim that income received through renting your spare room through airbnb should be treated the same as income received through renting your room not through airbnb?
For example, if I chose to rent my spare room outside of airbnb for 1 month (or even 3 months) at a time to different people should that be treated as a trade? And by extension if I rent a room for 2 years to 1 person and then to another person after that - is that a trade? Where do you draw the line in terms of tenure?
Shouldn't renting on airbnb and off airbnb not be treated the same way ie as casual non-trade income, which is what E&Y suggest? Why do you think they should be treated differently?
It's Revenue policy that short term Airbnb-type lettings normally form part of a trade.
Shouldn't renting on airbnb and off airbnb not be treated the same way ie as casual non-trade income, which is what E&Y suggest?
I appreciate that is the Revenue's policy and aside from whatever E&Y think, how can one differentiate between these two scenarios:
a) short terms rentals through air bnb
b) short terms rentals to lodgers in the traditional sense (not through air bnb)
Are they not effectively the same thing? By the way I agree that it would probably constitute carrying on a trade I just don't see the difference in using airbnb versus not using it especially if the tenure is an equivalent length.
I might be mistaken here but if I rent my spare room for, say 3 months, and decide to switch tenants every 3 months - I wouldn't be treated as carrying on a trade and I wouldn't pay tax so long as its under the 14k threshold re rent a room relief. So why is Airbnb treated differently?
What's the definition of a short tem rental and how does revenue police this?