Airbnb has become a popular way for people to make some extra cash and bump up their income. But does that mean you are considered self-employed? And do you need to let HMRC know what you are doing?

Is Airbnb Considered Self-Employment?

No, Airbnb is not considered self-employment.

It’s easy to confuse Airbnb with self-employment since Airbnb Hosts are generally hoping to make money, just like anyone who runs their own business.

Airbnb rentals fall under what HMRC labels “Land & Property” which carries its own set of rules.

Do You Need to Let HMRC Know About Your Airbnb Income?

Yes, you might need to let HMRC know about your Airbnb income. This means registering with HMRC for self assessment and sending in a tax return.

However there are some special circumstances where you are exempt from doing so, this is known as the Rent a Room Scheme.

Rent a Room Scheme entitles everyone in the UK to rent out a furnished room in their own home, tax free, for up to £7,500 each tax year.

A tax year runs from 6 April to 5 April.

If this applies to you, then you can read more about the Rent a Room Scheme for Airbnb Hosts here.

Tax On Your Airbnb Income

If you are not eligible for the rent a room scheme, then, even though you are not considered self-employed, there are still some tax implications for your Airbnb.

Generally speaking, anyone who is in business to make a profit needs to pay income tax.

However the amount of tax you need to pay depends on:

  • The property you rent out;
  • How much you make renting on Airbnb;
  • Your total earnings during a tax year.

To find out more about whether you need to register with HMRC and Airbnb Taxes, check out my post on Tax Advice for Airbnb Hosts.

Anita Forrest

Anita is a Chartered Accountant with over a decade of experience taking self-employed business owners from financially confused to business savvy.
She is the creator of the ‘Go Self Employed’ website, which is her corner on the internet where she makes self-employment less terrifying.
Anita Forrest

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