Air BnB Air BnB
Posts 1 to 8 of 8

Thread: Air BnB

  1. #1

    Nervous Newbie


    Join Date
    Oct 2019
    Posts
    4

    Question Air BnB

    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]

  2. #2

    Super poster

    ladymuck's Avatar
    Join Date
    Sep 2005
    Location
    London
    Posts
    3,385

    Default

    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

  3. #3

    Nervous Newbie


    Join Date
    Oct 2019
    Posts
    4

    Default

    Quote Originally Posted by ladymuck View Post
    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!

  4. #4

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    4,010

    Default

    Quote Originally Posted by JessMatt View Post
    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>
    See You Next Tuesday

  5. #5

    Nervous Newbie


    Join Date
    Oct 2019
    Posts
    4

    Default

    Quote Originally Posted by Lance View Post
    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

  6. #6

    Fingers like lightning


    Join Date
    May 2018
    Posts
    632

    Default

    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

  7. #7

    Nervous Newbie


    Join Date
    Oct 2019
    Posts
    4

    Default

    Quote Originally Posted by GhostofTarbera View Post
    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!

  8. #8

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    4,010

    Default

    Quote Originally Posted by JessMatt View Post
    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.
    See You Next Tuesday

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •