AirBnB rental income

Hi there, I rent out my home on Airbnb in 2 ways: -as a whole house (when i am away on holidays for a week or weekend) -as one bedroom (rent a room) when I am at home I want to calculate the tax I owe. In a tax year, i expect to earn about £2,500 in total (£1000 from renting the whole house + £1500 from renting one room). Am I better to: A) claim the £1,000 relief from renting the whole house B) claim the 7,500 rent a room relief C) claim allowable expenses (mortgage interest, utility bills, etc). I am unsure what counts towards allowable expenses i.e. mortgage interest for the whole year, or on a pro rata basis based on the number of rental days for the whole year. Many thanks for any clarification you can provide, Ciara

Hi ,
 

Thank you for your question. HMRC cannot advise on what option is most beneficial to you, however rent a room relief would not apply to cover total rents received from the Airbnb and renting out a bedroom whilst occupying your home. More information about when you can use that scheme can be found in our helpsheet : HS223 Rent a Room Scheme (2024)  . What counts as allowable expenditure can be found in  : PIM2068 - Deductions: main types of expense: contents    and : Work out your rental income when you let property  .  Thank you .

Hello, I am currently a lodger in my landlord's house. She will move out shortly and agreed to me putting her room on Airbnb to cover the cost. I have a PAYE job. As I will take the income, do I pay normal tax rates on what comes in from Airbnb? Thank you

Hi Spennis,
Thank you for your question.
The liability arising from Airbnb is solely for the owner of the property.
For you to receive the rental income, you must be a partial owner of the property. This means you must be registered on the property deeds.
Following this, a Deed of Trust must be submitted to HMRC showing the percentage split of the income from property.  
PIM1030 - Introduction: jointly owned property & partnerships - HMRC internal manual - GOV.UK (www.gov.uk)
TSEM9200 - Ownership and income tax: legal background: joint ownership - contents - HMRC internal manual - GOV.UK (www.gov.uk)
Thank you.