How To Take Airbnb Tax Deductions As A Host

In recent years, Airbnb has taken the hospitality sector by storm. As one of the largest hoteliers in the world, Airbnb allows property owners to host their home as a means of generating income. Due to…

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Last Updated: 5th December 2023

In recent years, Airbnb has taken the hospitality sector by storm. As one of the largest hoteliers in the world, Airbnb allows property owners to host their home as a means of generating income.

Due to its sudden emergence, there has been some misinformation regarding what Airbnb hosts need to do with regard tax. Specifically, whether or not there are certain expenses a host can offset against their Airbnb income.

To help bring some clarity, we’ve provided the ultimate guide to tax deductions as an Airbnb host.

Do I need to report Airbnb income?

Should your short-term rentals or Airbnb home earn you income in excess of the £1,000 per tax year trading allowance, then yes.

Do I automatically receive an Airbnb tax form?

There’s no specific Airbnb tax form. Individuals in receipt of Airbnb rental income

Your Self Assessment tax return is used to declare all income received during the tax year. Income from Airbnb is treated as rental income, as such you will to complete the supplementary page SA105 Income from Property.

If you are not already required to complete a Self Assessment tax return then you can register here. Please note that you must register no later than the 5 October after the end of the tax year in which you received your first income. For the year ended 5 April 2019 you should have registered by 5 October 2019 with you first tax return being due no later than 31 January 2020.

When you submit your Self Assessment tax return on (or prior to) 31st October, HMRC will calculate the tax owed and issue your Self Assessment tax bill. If you submit after 31 October you must do so online. However, HMRC will not guarantee sending you a bill before payment is due so you must use software to make the submission and calculation.

How much tax do I need to pay on Airbnb income?

This very much depends on what other income you have and then the ‘profit’ made from your Airbnb income.

It also depends on whether you’re renting out a full property or a room of your own home. If the latter is true, then you may qualify for the rent-a-room allowance of up to £7,500 per year (splt if home is jointly owned) – provided you also live in the property part of the time.

However, if you’re renting a holiday home or separate property of any kind you’ll be taxed in the same way as a business owner. The rate of tax you pay (20%, 40% or 45%) then depends on your other income.

Do Airbnb properties have deductible expenses?

Yes, you are renting out a single room or rooms in your main residence then you may qualify for the rent-a-room scheme. This means that the first £7,500 of income is tax-free. Only paying tax on income higher than this. A great scheme that means you only have to keep records of income.

If you do not qualify for rent-a-room or you rent a separate propery then the normal rules on expenditure apply. Details of this can be found here.

How do you file for Airbnb taxes?

As mentioned above, you’ll need to collect all of your Airbnb documentation to build a fuller picture of your income and expenses. This information is added to our tax return to calculate any tax due.

Secondly, register for Self Assessment so that you’re able to declare your earnings before the 31st January online deadline.

Finally, remember to also include on your tax return details of all other income you received, even if you have already paid tax on this and HMRC have the details.

How we can help

If you’re still wondering how best to report Airbnb income, turn to GoSimpleTax. Our software works wonders when it comes to logging relevant income and expenditure. It may even highlight ways you may be able to reduce your liability.

Once earnings and outgoings have been logged, you can simply file your Self Assessment tax return directly to HMRC through GoSimpleTax.

Our team work tirelessly to make Airbnb letting straightforward without punishing the hosts. As you enhance your earnings, you’ll recognise the importance of paying exactly what you owe – otherwise you run the risk of falling foul of HMRC’s rules and facing their penalties.

So, sign up for the trial of GoSimpleTax software today and enjoy Airbnb hosting as it was intended.

If you are looking for further tax guidance as an Airbnb host, read our Tax Guidance For Airbnb Hosts article.

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Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.

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