Sharing economy tax takes effect In the UK

Last year, the UK government announced plans to cut the tax bills of ‘self starters’ who share their homes to help pay the bills. As of 1 April 2017, Airbnb hosts in the UK will now benefit from the increased tax free earnings.

Under the new allowances, Airbnb hosts won’t have to declare or pay tax on the first £1,000 they earn from sharing their homes, which means they’ll have a little extra money to pay bills or support their local communities.

A recent study by PwC UK found that the UK now boasts Europe’s fastest growing sharing economy with a £3.5bn rise in transactions, marking a 92% increase from 2014-15.

We’re happy to see the UK leading the way in the sharing economy by introducing new incentives that empower regular people and promote innovation.