HMRC and co-hosting

[Anna772]

Does anyone know whether HMRC in England would view hosting and co-hosting differently in terms of the personal allowance?  I feel they are different in that your services are engaged by another host in co-hosting whereas you are "self-employed" as a host. Hope this is clear enough.

Clarification greatly appreciated. Thanks for your help.

[Helen3]

On what basis is the co-host operating their business? Are they self-employed or are they operating as a limited company? Do they also have paid employment?

The HMRC or accountant is best placed to answer their questions.

But you aren't correct it makes no difference tax wise whether you are a self employed host or a self employed co-host.

[Jeff158]

Hi @Anna772

IMO working as a co-host or a host you are self employed, you're not employed and you're not unemployed.

Your personal tax allowance is a fixed amount that has no bearing on how you earn your income, you can be employed, self employed and unemployed and your personal allowance won't change.

Or perhaps you mean something completely different.

[Anna772]

Hi Jeff, and thanks for your message.  There is an allowance for rent a room here in the UK that is on top of or seperate from the personal tax threshhold allowance and is not taken into consideration unless it is over £7500/year currently.  Is co-hosting regarded as part of that or is it regarded as normal income by HMRC?  I hope this is clearer now. Cheers

[Jeff158]

In that case co-hosting would be normal self employed income as the income from co-hosting is through providing services for  accommodation in someone elses home.

FROM GOV.UK: You can’t use the 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 - you can use the scheme if your lodger works in your home in the evening or at weekends or is a student who is provided with study facilities
• in your UK home and is let while you live abroad

[David126]

@Jeff158

That is talking about the Host, the Host - Co Host relationship could well be different. Look at all the discussion about the Gig Economy and if they are Contractors or Employees.

[David126]

You could be either, a bit like being a Driver, Employee or Self Employed.

Devil would be in the details.