Air BnB

[JessMatt]

Hi all,

I'm new to the world of contracting (one week in!) and while I have so far been okay navigating the rather confusing world of tax I have a question on expenses and specifically air bnb/hotels.

I am working remotely from home most of the time but will need to stay in London, usually for a few days per month. This month I chose an air bnb as it seemed the best option, but when I'm looking at my expenses now I can only get a VAT receipt for the actual service charged by air bnb - is that right? I thought the whole booking would have VAT applied.

If not, is this the case for hotels too? (And would I just be better booking a hotel in future for the sake of claiming back VAT?)

Any suggestions would be great... isn't tax fun!?

[For further context: the booking was about £180 and the air bnb charge was £24 - so very little VAT on that]

[ladymuck]

It's unlikely the person renting out their home is VAT registered so are not in a position to give you a VAT invoice. Air BnB are only providing an introduction service and that element is a vatable supply.

IANAA

[JessMatt]

It's unlikely the person renting out their home is VAT registered so are not in a position to give you a VAT invoice. Air BnB are only providing an introduction service and that element is a vatable supply.

IANAA

Thanks very much for your response!

[Lance]

Hi all,

I'm new to the world of contracting (one week in!) and while I have so far been okay navigating the rather confusing world of tax I have a question on expenses and specifically air bnb/hotels.

I am working remotely from home most of the time but will need to stay in London, usually for a few days per month. This month I chose an air bnb as it seemed the best option, but when I'm looking at my expenses now I can only get a VAT receipt for the actual service charged by air bnb - is that right? I thought the whole booking would have VAT applied.

If not, is this the case for hotels too? (And would I just be better booking a hotel in future for the sake of claiming back VAT?)

Any suggestions would be great... isn't tax fun!?

[For further context: the booking was about £180 and the air bnb charge was £24 - so very little VAT on that]

Don’t let the tax trail wag the dog...
Air bnb is very little VAT as you’ve noticed. They might still be more cost effective though.


Hotels do charge VAT (except for a no show, which means you get charged more for a no show than actually arriving and crapping in the bed.....)

You’ll soon find out that trains don’t charge VAT, nor do airlines.

Although if you’re new, why aren’t you on flat rate vat???

<nluk mode>do you have an accountant?</off>

[JessMatt]

Don’t let the tax trail wag the dog...
Air bnb is very little VAT as you’ve noticed. They might still be more cost effective though.


Hotels do charge VAT (except for a no show, which means you get charged more for a no show than actually arriving and crapping in the bed.....)

You’ll soon find out that trains don’t charge VAT, nor do airlines.

Although if you’re new, why aren’t you on flat rate vat???

<nluk mode>do you have an accountant?</off>

Thanks for the reply, that does make sense. I have a meeting with an accountant next week, but am just keen to get ahead of the game and it irritates me not being able to understand it all

[GhostofTarbera]

Go flat rate vat and forget worrying about such trivial matters as the £2k you save per year will more than make up for it


Also remember - no expenses if your contact is inside IR35


Sent from my iPhone using Contractor UK Forum

[JessMatt]

Go flat rate vat and forget worrying about such trivial matters as the £2k you save per year will more than make up for it


Also remember - no expenses if your contact is inside IR35


Sent from my iPhone using Contractor UK Forum

Sounds like the flat rate is the way to go - cheers!

[Lance]

Sounds like the flat rate is the way to go - cheers!

people querying why you aren't on flat rate is very different to suggesting you should change to flat rate.
Discuss with your accountant.
Everyone I know who has been on flat rate did it right at the beginning. I've never known anyone change to it and I'm not sure if you can change to it and get the 1% discount. If you can't get that discount then just don't bother.