Renting out my home on Air BnB

If you provide furnished accommodation in your main or only home, (whether you own or rent the property), you should be able to use the Rent-a-Room Scheme. This includes letting your home or rooms in your home on Airbnb or another home rental platform.

The Rent-a-Room Scheme allows you to receive up to £7,500 tax-free per annum. This reduces to £3,750 if someone else receives income from letting accommodation in the same property, such as a joint owner. The limit is the same even if you let accommodation for less than 12 months.

What are the conditions?

There are some conditions to meet to qualify for the Rent-a-Room Scheme, but they’re not difficult to achieve. You can’t use the Rent-aRoom Scheme if the accommodation is:

• not part of your main home when you let it
• not furnished
• used as an office or for any business
• in your UK home and is let while you live abroad

If you receive any state benefits, check out how rental income from a lodger or Airbnb income would affect your benefits here.

How does the Rent-a-Room threshold work? 

If your gross income fromAirbnb is not more than the Rent-a-Room limit of £7,500 (or £3,750 if you are a joint owner), you don’t pay any tax on your rental income.

If your gross income is more than the threshold, you may still be able to benefit from the Rent-a-Room Scheme because you can opt to deduct the £7,500 threshold (rather than your actual expenses). This may be beneficial if your actual expenses are less than £7,500. If you opt to deduct the Ren-aRoom threhold rather than your actual expenses, you cannot create a loss.  

Do I need to file a self-assessment tax return? 

If you don’t already need to file a self-assessment tax return, you won’t need to register for self-assessment if your Airbnb income is below the Rent-a-Room Scheme threshold. 

If you already file a tax return, your gross income includes: 

•  rental income (before expenses) 
• any amounts you receive for meals 
• amounts you receive for goods and services, such as cleaning, laundry and any balancing charges 

How can TaxAssist Accountants help? 

If you’d like to discuss the Rent-a-Room Scheme further, please do not hesitate to contact us today on 0800 0523 555 or use our online contact form.

Last updated 17 Jul 2026 | First published 7 Sep 2018

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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