The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.

There is no tax to pay on trading income or earnings from land and property as long as the income from each of these two sources does not exceed £1,000.

You may have seen recent headlines about the tax affairs of Airbnb in the UK and that HMRC have charged them with an additional £1.8 million of tax following an investigation. If you are a UK citizen, or a general fan of tax payments you may think that sounds good as the company didn’t seem to be paying enough tax. But how will this change affect Airbnb hosts? 

Although the Brexit process continues to throw a spanner into the normal workings of government, there are a few certainties from a tax point of view that will be effective from April 2020. A few property related changes are noted in this article:

The 2019/20 tax year started on the 6th April and contains a number of changes which buy-to-let landlords should be aware of for the year ahead. 

Typically, those who are older and have applied for a buy-to-let mortgage have faced barriers due to the limited options available to them. 

The expenses you claim against your property income will need to follow the usual HMRC ruling that the costs must be incurred wholly and exclusively for the purpose of renting out the property.

Buy-to-let landlords need to start considering their options, in particular, those who have borrowed heavily in order to build their property portfolio.
 

Buy-to-let landlords need to start considering their options, in particular, those who have borrowed heavily in order to build their property portfolio.