Top tips to account for Airbnb income

 

Accounting services  Airbnb management income Making sure you accurately account for the income from your Airbnb property is extremely important. In recent years the laws have changed regarding expenses you can claim against and which property improvements you can offset tax for.

Whilst there can be a large financial gain with short term lets, you need to make sure your financial records are accurate to keep the tax man happy and things running smoothly. With our top tips we hope to remove some of the potential stress and help you find things a lot less taxing!

Following the Chancellor’s recent budget and with effect from 6 April 2016, the ‘rent a room relief’ was increased from £4,250 to to £7,500. It now means an individual who rents out a room in their main home and meets the conditions will not pay any income tax on the rents received up to this amount, regardless of their other income.

Craig Harman, consultant from Perrys Chartered Accountants added,

“It should be noted however, that this threshold is based on the gross income received before deduction of any expenses and includes receipts for any additional services such as meals and cleaning. 

As with any business it is a requirement to keep detailed records of the income received and business expenses incurred, however this is particularly important for those who exceed the above threshold. In this case, the individual can choose to either deduct the relief from their income and only pay income tax on the amount received above £7,500 or deduct their actual qualifying business expenditure if this is greater. 

From April 2017, the amount of tax relief available for finance costs against an individual’s residential property income will be restricted. However, individual’s who let out their properties on a short term basis and meet the furnished holiday let qualifying conditions will not be affected by the new restrictions. Therefore those in this position will need to take particular care to monitor the conditions and maintain accurate records to determine the number of days the property was available for and the number of days on which it was actually let during the tax year.”

 

Whilst it can initially seem daunting and confusing, we recommend keeping a clear record of how many days your property has been occupied throughout each tax year and the income attributed to those stays. (Our new host dashboard which is currently in beta testing will help you do all of this effortlessly!) Once you have this data, leave it to the experts! For very modest fees accountants such as Perrys Chartered Accountants will take care of everything including submitting your tax return to HMRC, allowing you more time to concentrate on the things that matter in life.

So to recap:

  1. Make a note of the number of days your property is occupied through Airbnb
  2. Make a note of all the income for all of those stays
  3. Keep receipts for cleaning, property improvements, repairs etc (These can be offset)
  4. Find a good accountant to take the above and submit your tax return to HMRC

It’s as simple as that. For more information on, or if you are an existing host who would like to help test Airsorted’s new Host Dashboard please send an email to hello@airsorted.uk.

Airsorted’s Launch into the Scottish Capital

Today marks the official launch of Airsorted in Edinburgh. Whilst we may have been working away behind the scenes since early February – sorting the logistics, finding cleaners, linen companies and handy men, today is the day we cut the red ribbon and officially open the Edinburgh Airsorted doors to all! We admit we do have a small head start (we managed to bring 20 hosts and their homes on board prior to our official launch!) and such is the enthusiasm from the local residents we expect Edinburgh to be an incredibly successful city and one instrumental to our growth.Edinburgh castle

So why choose Edinburgh you ask?

Edinburgh seemed like the perfect City for us to continue our rapid growth. It is a vibrant hub for tourists to the UK, it has world class Universities and it has fantastically successful year round events which draw large numbers to the City. The Edinburgh fringe festival in the summer months is the perfect example, where the City literally overfills with people and Edinburgh comes together as one to celebrate.

There is so much going on in Edinburgh and with over 1.5 million overnight tourist visits in 2015 alone, and at number two in the “most visited tourist cities in the UK”, it was the clear choice of where to go next for Airsorted!

Our official launch starts with a mail-drop campaign which will see 11,500 leaflets posted by the Royal Mail to the residents of central Edinburgh, educating them about Airbnb management and its benefits as well as offering a special launch discount too! Whats more if you tweet a picture of the leaflet with yourself to @airsorted we will double our launch offer!

We are really excited to be launching- and you, the residents of Edinburgh, now have the perfect opportunity to join the sharing revolution and open the doors to your home whilst you are away.

But we aren’t stopping here! Airsorted have big plans and want to help spread the sharing economy further and wider, whilst helping remove the hassle. We will be launching in new cities in the coming months, so keep an eye out as we may be coming to you soon!

Airbnb Management London

How London made it onto the podium of ‘most popular Airbnb cities’.

Since launching in 2008, Airbnb has grown to 60 million users worldwide. With 640,000 hosts spread throughout 34,000 cities in 190 countries around the world, the sharing economy is well and truly booming.

Airbnb Management LondonSo how exactly has London managed to sneak into the podium places? With only Paris and New York ahead, London is officially the third most popular “airbnb city” in the world. Leaving Rio, Barcelona and Los Angeles in its wake, we take a look at just how London has propelled itself to where it is in the rankings.


Surely we have to start with our good old British culture. Everyone loves the Brits, we love to moan, complain and queue for no reason! Who wouldn’t love us?
But seriously, the United Kingdom and especially London has a wealth of history and culture. Everywhere you look in London you are surrounded by it. From the modern architecture in the City of London to the tudor properties such as Sutton House in Hackney, London is saturated with history. We are also a heavily cultured bunch and on any given day in London you can experience operas, ballets, a West End musical, Shakespeare at The Globe, a new modern at The National, the list is endless. There really is something for everyone in London!


Next, it must be us, the people, and of course our accent! Everyone loves the good old British accent, in fact apparently it is an aphrodisiac to certain nationalities around the globe! Londoners can be an extremely friendly bunch when we want to! From Black cabbies who will give you directions to anywhere,and I mean anywhere in the city, to locals in the suburbs we are a really friendly, helpful bunch of people. It may look like no-one talks to each other and we walk around like isolated zombies, but this is how you behave on the underground until otherwise approached. It’s the commuter culture and if you need anything just ask, when approached we’re sure to help!


London landmarks and “British icons” are also a must. Any tourist I’ve ever met visiting London has always said they must get a photo of a black cab, a red bus and of course the good old British telephone box! (although these are now getting rarer and rarer). These are quickly followed by landmarks including Big Ben, Houses of Parliament, Tower Bridge and Trafalgar Square. We have so much to see and landmarks and points of interest in every corner of the City that it is often hard to fit it all in to a short city break.


Finally, the food, how can we forget the food? London has some of the finest restaurants in the world and you could quite easily eat a different cuisine every night of your holiday without ever running low on options. From good old British fish and chips to the finest sushi in Europe there is something to cater to anyone’s culinary needs and desire.


All of these are surely winning reasons as to why London is now officially the third most popular “airbnb city” worldwide, however we at airsorted believe the homes people can stay in is also a huge contributing factor. London has a fantastically diverse range of airbnb options available for the global traveller. From the Clock tower at Kings Cross to Regents canal, London has some truly unique options for you to rest your head in at the end of a hard day’s sightseeing. Who would stay in a hotel when you’ve got Airbnb? If your lucky the property will even be managed by Airsorted!

Self Starters ‘Tax Break’ Will Further Boost the UK Sharing Market

Autumn Statement papers

The UK’s sharing economy is set to benefit hugely from the Chancellor’s new plans to further cut the tax bill to the thousands of ‘self starters’ who currently share their homes.

Under the new plans, hosts will be able to earn a further £1,000 tax free income by sharing their homes without having to declare it.

The announcement was made within last week’s budget by chancellor George Osborne:

“…we’re going to help the new world of micro-entrepreneurs who sell services online or rent out their homes through the internet. Our tax system should be helping these people so I’m introducing two new tax-free allowances each worth £1,000 a year, for both trading and property income. There will be no forms to fill in, no tax to pay – it’s a tax break for the digital age and at least half a million people will benefit. ”

It will come as fantastic news to hosts using Airsorted’s services and further adds to the

‘Rent a room’ tax relief which was announced last year and comes into force next month. From April 2016 the first £7,500 of income will be tax free, in a bid to encourage more people to open their homes and join the sharing revolution.

2016 looks like an exciting year for the sharing community, with numbers rising rapidly in 2015 and over 40,000 properties currently available in London alone, now has never been a better time to start sharing.