Spare room for rent? Don’t forget the taxman! Thousands of Britons who earn income by renting out rooms or investment properties on a short let/holiday let basis via platforms like Airbnb could face fines this year if they fail to declare their income.
Starting January 1st, 2024, platforms like Airbnb will be automatically reporting your earnings to HMRC, making it harder for casual landlords to fly under the radar. So, if you haven’t been declaring your rental income and you’re exceeding the threshold, we recommend you speak to a qualified accountant.
The good news? If you earn less than £7,500 (around £625 per month or £144 per week) from renting out a furnished room, you’re automatically exempt from income tax on that income.
These tax changes form parts of the governments war on the popular gig economy, and means from 1 January 2024, new data-sharing rules will force popular digital platforms to share their users’ information, including their income, with HMRC. The new rules will apply to well-known ‘side hustle’ platforms, such as Etsy, Airbnb, Deliveroo, Uber, Upwork and Fiverr.
New Year, New Aspirations
We’d like to wish all of our valued clients a happy prosperous new year and look forward to supporting you with your mortgage and insurance needs throughout 2024.
Our award winning team is now back in the office and available at 0208 364 3444 alternatively click here to schedule a free consultation call.
Resi transactions down third consecutive month
Residential transactions fell for the third consecutive month in November with seasonally and non-seasonally adjusted transactions down by 1% and 2% respectively, according to latest figures from the HMRC.
The provisional seasonally adjusted UK residential transactions in November 2023 are 80,780; 22% lower than November 2022 and 1% lower than October 2023.
Industry commentators suggest the dip in transactions is a clear indication of less confidence in the housing market, along with higher mortgage costs, resulting in a lower level of transactions as buyers and sellers were not motivated to transact.
Average rent in Great Britain up by more than a quarter
Average private rents in Great Britain have soared by more than a quarter since the start of the Covid pandemic and will keep rising, according to an analysis.
The typical private rent will end this year 9.5% higher than in December 2022 and then rise a further 6% in 2024 before hitting an “affordability ceiling”, according to the estate and lettings agent Savills.
The severe shortage of properties has led to intense competition for what is available, with long queues of prospective tenants at viewings, desperate paying over the odds, and some landlords demanding a year’s rent upfront.
Savills said property supply shortages and “tougher conditions” for landlords “will keep UK rental growth strong in the short term”.