AirBnB operating costs for tax offset

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    Originally posted by jpkeates View Post
    , but it would be interesting to hear what a real accountant says.
    the above post was from info provided my accountant ...... who suggests that i would fall under the rent a room scheme !


      thenmoney saving expert bit is titled

      21 AirBnB hosting tips


        I suspect that whoever told you that the scheme only applies if you're living in the property was probably wrong.
        And I'd be even more sure if the response came from HMRC!

        I think the general expectation is that you'd be renting a room or some rooms, but there isn't actually a limit and you don't have to be there at the same time as the room(s) are rented.
        But I don't think there is any rule that says you can't rent your entire property out under the scheme.

        And generally, if it's not prohibited, it's allowed.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).



          now that's the type of response i like to hear !!

          it was HMRC that told me the scheme wouldnt apply

          re the whole house being rented, on the website it states 'you can let out as much of your home as you want to'

          the additional information from my accountant though, was that i cant claim for office expenses for my rental properties as that may suggest its not a 'home' for the purposes of rent a room scheme !


            There's a point at which "as much of your home" becomes "all of it" which I think is the issue here.
            There's nothing I can see that says 99% is OK but 100% isn't, which would, in theory mean it's OK - because if it's not prohibited it's allowed.

            The issue is whether renting the whole place moves you from the rent a room regime to the holiday letting / residential letting regime.
            Ie. It's allowed, but the rules change.

            If you let out all of your home, is it still your home?

            And your accountant's point about the home office only applies when you're a resident - it's a familiar point though.
            It has all kinds of potential (and mostly theoretical) CGT issues associated with it.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


              thanks for the response - our original plan was only to 'host' around 10 times a year for 2 days each booking. we are close to an exclusive wedding venue and have only taken wedding guests inc grooms and brides families. we have turned down a LOT of people looking for a weekend away and even a fortnight in one case - despite our listing clearly stating as such. We even had a request from someone who wanted to host their own small marriage ceremony

              your point re is it still your home, is a massive one we are struggling with, especially my wife - which means we may discontinue the 'project' next year (after honouring the 3 bookings we have taken for next year)

              we have calculated that we can only take 7 bookings a year (14 days) before we hit the £7500 gross earnings, so its not a lengthy impact BUT it is an impact that does have its downsides

              are you suggesting that the accountants interpretation of home office is incorrect and we should continue claiming for it as part of our expenses for our other rental properties?


                our other option and prob the best option, which we hadnt considered is to offer 1 day bookings at a higher rate - having gone through all the figures and after considering previous and future bookings - it might be better operate differently - purely on the basis that it produces the best return for the least occupation


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