Intended to boost the number of “micro-entrepreneurs” who make small amounts of money online, the tax breaks were introduced by the chancellor, George Osborne, with specific reference to the online marketplace eBay and the short-term lettings site Airbnb.
The new allowances will mean that, from April 2017, individuals with property or trading income won’t need to declare or pay tax on the first £1,000 they earn from each source per year. If they earn more than that amount, they will still have to declare the earnings, but can benefit by deducting the allowance first.
Score another one for Airbnb hosts! With the crazy growth in the sharing economy over the past few years, the pressure has been put on governments to find ways to work with their local communities to regulate and work with the sharing economy. The UK has been an early adopter of working with the short-term rental industry, as this is the second tax break that has been enacted to benefit people looking to supplement their income by renting out their homes.
As a company that loves helping people make money by hosting their homes on Airbnb, we are always excited when we hear about the acceptance of the sharing economy in local communities. The UK isn't the only one recognizing the sharing economy as a huge and rapidly growing industry. Many cities within the US have also adopted regulatory provisions making it easier and, in some places, legal to rent their homes to supplement their income. For example, Jersey City, Arizona, Denver, and Virginia to name a few have recently enacted regulations to tax short-term rentals in their communities.
These changes/regulations, based on allowing people to consider utilizing their homes to supplement their income, makes MetroButler services even more valuable. As a property management & concierge company for short-term rentals we can help people maximize their profits while not having to take the time and effort away from their day to day work and responsibilities to sweat the details.
As the world continues to adapt and accept the sharing economy we at MetroButler are honored and excited to a part of the amazing community that is the sharing economy.