Thinking of setting up an Air B&B

Bernice101

I am thinking of using 2 bedrooms of my cottage for Air B&B, and was wondering about the costs. I would need to take out an insurance policy (public liability??) and was wondering what this would roughly cost?

Also, what rate of commission do the booking website charge?

And I am assuming there are tax implications, how would that affect my PAYE?

Thanks for reading

If you live in the house also you are much better off renting the rooms on a longer term basis under the rent a room scheme. This allows you to earn up to 14k per year tax free while the people renting the rooms are still licensees thus you can evict them whenever you want. It also less hassle than operating an airbnb.

marcus001

Abdullah Old Tower wrote: »

If you live in the house also you are much better off renting the rooms on a longer term basis under the rent a room scheme. This allows you to earn up to 14k per year tax free while the people renting the rooms are still licensees thus you can evict them whenever you want. It also less hassle than operating an airbnb.

Do you have to own the property to do this or is it possible to avail of this as a sublettor (with the LL's permission obviously)

marcus001

marcus001 wrote: »

Do you have to own the property to do this or is it possible to avail of this as a sublettor (with the LL's permission obviously)

You can avail of it in a property you are renting also but you must live in it with the people you rent the rooms to.

davo10

Op, I'm going to Airbnb my current home when we move out. I've contacted an insurance broker who provides cover for Airbnb properties. You need a seperate policy in addition to your standard home insurance, costs about €200 per year.

machalla

davo10 wrote: »

Op, I'm going to Airbnb my current home when we move out. I've contacted an insurance broker who provides cover for Airbnb properties. You need a seperate policy in addition to your standard home insurance, costs about €200 per year.

Are insurance policies allowable against any taxable income when doing airbnb?

TSQ

Far as I know, most home insurance policies allow you to have up to two paying "guests". You should check with your insurers if that covers short-term guests. If you are going to have more than two guests at a time then you need to get insurance. OBF do non-standard policies including holiday home insurance which covers paying guests, worth contacting.
Every expense that could be linked to use for generating income is allowable: a portion of insurance, electricity, refuse collection charges etc, also food if providing breakfast, laundry, linen, cost of furniture used exclusively for airbnb (eg beds and mattresses) and wear and tear on other stuff, probably some of your mortgage (?) or part of your rent.. etc. Any profit after deduction of expenses is taxable as income. If your income after all expenses is less than a certain amount (around €3,200 per annum, not sure exact sum) you can declare it via the Revenue Online platform quite easily, no need for an accountant, just keep an list of reasonable outgoings (save any receipts as well) for 6 years in case you ever have to produce proof of expenses.