Description
This article is very handy for your clients who are thinking of renting out a room for travellers which is becoming a popular way to make some extra cash. It explains the tax implications (income and CGT) and outlines possible deductions to offset potential tax.
Introduction
Renting out a spare room can be a great way to earn some extra cash, particularly with the help of Airbnb and similar online services. However, it’s easy to overlook the fact that the rent you charge, even on short-term stays, is taxable income. It must be declared on your annual tax return and, depending on your total income you may need to pay tax on what you earn. On the other hand, the deal might be sweetened with tax deductions.
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