What are my tax obligations as a Host on Airbnb?

On 1 January 2024, new legislation came into effect which requires online platforms like Airbnb to report UK Host earnings for tax purposes. You may be wondering how this will affect you, and how you can learn more about your tax obligations

We know you want to pay your fair share of tax, so we’ve pulled together a guide to help you understand the new rules and your tax obligations. 

What are the new rules?

The new rules are not substantially different to what existed before. HMRC already had the ability to request user income information from UK-based digital platforms on an ad hoc basis. And, as you know, we have shared Host earnings information with HMRC in the past to support the correct payment of tax. The new rules simply formalise the way the information will be shared by all platforms from now on. 

In line with the new rules, we will report this information for the first time in January 2025.

Do these rules impact the amount of tax I pay?

Good news! No, your tax obligations for your Host earnings have not changed compared to previous years. The main difference is the way in which we report your earnings.

We will need to ask you for some additional information, like your tax identification number, if you haven’t already provided it. We’ll update you soon with more information.

So how much tax do I need to pay? 

Tax is a complex topic and your tax obligations vary based on your particular circumstances. For this reason we recommend that you research your individual tax obligations or consult a tax accountant for more specific information.

In general, you’re taxed differently depending on whether you’re renting out your entire property or just a spare room in the house you live in. 

There are also a few other factors that affect whether and how much you need to pay, including how much you earn from renting out your Airbnb and how many days you’ve hosted.

Still confused?

We offer a range of support for Hosts to help you understand tax and follow the rules:

  1. Take a look at our UK Tax Hub, which provides resources, videos and articles to address tax-specific topics, including some Self Assessment Tax Tips for Hosts on Airbnb written by our partner, TaxScouts. These will help you better understand your UK tax obligations. 
  1. You can also read our free tax guide, which was put together by an independent third-party accounting firm. The guide covers general tax information for the UK.
  1. If this all sounds like too much, then we have a partnership with an online tax platform called TaxScouts, offering you a direct line to professional, independent support, as well as a discount on tax services.
  1. More tax related information can also be found on the responsible hosting page.

Now what?

31 January is the deadline to submit a Self-Assessment tax return so now is a good time to check if you need to declare your income and pay tax.

To start your tax return, you can find your Airbnb earnings on the Transaction History page in your hosting dashboard.

And remember…

Whether you are already a Host or thinking of becoming one, it’s important to make sure you’re allowed to welcome guests in your property. Your ability to host may be restricted by contracts, laws, and community rules. You can find more information here.

Please note that the information provided in the articles is not exhaustive and should not be considered as legal or tax advice. We highly recommend conducting your own research to ensure accuracy, as the articles may not be updated in real time. It’s important to verify the information from reliable sources to confirm any recent changes that may have occurred.