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Accountants for Airbnbs

Airbnb is a great way for homeowners to make some extra money. Enabling you to rent out part or all of your property, it tops up your income and allows you to provide affordable accommodation to visitors in your area. But earning over certain thresholds means you’ll need to declare your Airbnb income to HMRC. This is especially pertinent since 1 January 2024, when Airbnb/HMRC data sharing came into effect.

Many hosts look for accountants for Airbnbs lettings to help them out. This ensures their tax is calculated correctly and paid on time. But how do you choose the right provider? Here are some tips.

Do you need to pay tax on your Airbnb income?

Firstly, it’s worth mentioning that if you earn less than £7,500 per year from renting a room in your main home, you won’t need to pay tax. Similarly, if your income from an entire property is less than £1,000 per year, you aren’t liable for Income Tax. Any earning above these thresholds, however, require you to complete a Self Assessment and declare your rental income.

Accountancy services for Airbnb hosts

A good accountant will offer a range of services to ensure you’re tax compliant. Now that the Airbnb UK regulations have changed and data can be shared with HMRC, it’s more important than ever to pay the correct amount of tax.

Bookkeeping is a key part of compliance. This tracks your income and expenses for everything related to your property, including utilities, mortgage interest, and cleaning products or services. An accountant can ensure every transaction is recorded so that you know exactly how much you’ve earned, and what you’ve spent. Keeping track of transactions will make filing your tax return much simpler too, as you won’t need to go back through your dashboard and receipts, calculating everything at the end of the year.

Your Airbnb tax accountant will also ensure your tax return is filed correctly and on time. They can also make you aware of how much tax you’re likely to owe ahead of the payment deadline, so that you can save up in advance.

Tax advice

In addition to providing practical services, accountants for Airbnb income can offer advice year-round. Legislation changes for short term lets can be a source of concern for hosts, and a good accountant will discuss whether new regulations affect you, putting your mind at rest. They can also help you to decide whether it’s worth extending your offering by renting out further properties or hosting for more than 90 nights per year.

Should you decide to sell an Airbnb property, you may be liable for Capital Gains Tax. If that’s the case, an accountant will be able to calculate how much you owe depending on your circumstances.

Experienced accountants for Airbnbs

The team at Ibiss & Co has a wealth of experience helping Airbnb hosts comply with their tax obligations. With offices in Barking, Tooting and Walsall, we offer a comprehensive range of accountancy services and advice for hosts across the country.  Contact us today to find out more.

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