A new tax break that will allow UK hosts to earn up to £1000 tax-free was confirmed by the government last week, and will come into effect for the tax year 2017-2018.
Last year, the UK government announced plans to cut the taxes paid by ‘self starters’ including those who share their homes to help pay the bills. The new property allowance will allow many hosts on Airbnb in the UK to benefit from increased tax-free earnings.
Under the new allowance, hosts on Airbnb in the UK won’t have to declare or pay tax on the first £1,000 they earn from sharing their homes, which means they’ll have a little extra money to pay bills or support their local communities. It’s important to note that if you already claim Rent a Room relief, you won’t be able to use this new allowance. (As circumstances vary, you should always consult a qualified person for advice on your specific tax situation.)
On average, hosts across the UK earn £3,000 a year. We find that hosts on the platform use that extra income for a variety of reasons whether that’s to help offset expenses or to save up for a summer holiday. In the UK, 62% of hosts are female and the average age of a host is 43.
Together, hosts and guests on Airbnb have contributed £3.46 billion to the UK economy. Which means generating extra income for host households, and increasing visitor spending in bars, restaurants, shops and other local businesses close to the guest’s Airbnb listing.
This is good news for the growing number of hosts on Airbnb in the UK who are sharing their homes, earning a little extra money to pay the bills and bringing new economic benefits to their communities. The UK has set itself as a global leader for the sharing economy and is introducing progressive new rules that empower regular people and promote innovation through technology.