Homeowners who rent out a spare room on Airbnb reportedly face a big tax bill.

A note buried in the budget red book reveals that the government wants to deny ‘rent-a-room’ tax relief to people who use the home lettings website.

The allowance lets anyone earn £7,500 a year from lodgers without having to pay income tax.

However, it says the government will consult on a proposal to “redesign” the relief to make sure that it is targeted at longer-term lettings.

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Comments

I wonder when we will need to all register for VAT (as all Spanish businesses do regardless of turnover) if we are renting out property on short term basis?

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