Industry

Sharing economy allowance boost

The chancellor announced financial support for the sharing economy in the form of two new tax allowances, each worth up to £1,000 per year.

It’s an incredible financial support announced by the UK government for us and other businesses, and we are so thrilled to be contributing to these on-going changes as our customers benefit from tax relief.

With ever upwards pressure on London hotel rates and a growing demand from tourist and business travellers for more immersive, local, ‘airbnb’ type of experiences there is definitely an opportunity and income to be had from renting out your home in the capital and what was missing is the government support and clarity for the short-term rentals of your home.

In his budget speech, the chancellor announced: “… we’re going to help the new world of micro-entrepreneurs who sell services online or rent out their homes through the internet. Our tax system should be helping these people so I’m introducing two new tax-free allowances each worth £1,000 a year, for both trading and property income. There will be no forms to fill in, no tax to pay – it’s a tax break for the digital age and at least half a million people will benefit.”*

Partnering with a carefully selected portfolio of great properties; we started UnderTheDoormat 18 months ago to help Londoners make the most of their homes whilst they’re away; removing all the hassle from the process. All a homeowner needs to do is tell us when they are spending time away and we organise everything else: from bookings and guest greetings to professional cleaning, maintenance and insurance.

The chancellor’s announcement last week will not only help Londoners to earn additional effortless income but it will also help build a whole new sector of UK businesses like ours that are springing up to support them.

We would like to share a comment that reflects and summarises the industry mood: “This is a colossal win for Britain. We are the first in the world to introduce a sharing economy allowance that allows individuals to earn up to £2,000 tax free. This demonstrates that the UK truly is the home of the sharing economy and leading the global stage.”