What Is The New Tourist Tax?: In my latest video, I speak about the government’s new Overnight Visitor Levy on short stay lets; Airbnbs; and hotels in England.
In the video, I explain exactly what this means for property investors, and how you can protect your profits. If you own or operate serviced accommodation in England, or plan to in the future, make sure to take notes!
You can watch the full video at the top of this article, or on YouTube. Drop me a comment on YouTube letting me know what you think of this new tourist tax.
So, what is the new tourist tax? The new Overnight Visitor Levy will allow local mayors to charge a nightly fee to: Airbnb hosts; serviced accommodation providers; hotels; and guest houses. The fee is likely to be up to 5% of the nightly rate.
The scheme is currently being trialled, with full implementation expected in 2029. This is something everyone should understand, and prepare for ahead of time.
In this article, I will give you 3 facts about the new tourist tax that every serviced accommodation provider needs to know! By the end of this blog post, you will be ready for the changes when they happen!
I am not a lawyer, and this isn’t legal advice. The concepts in this article have been simplified for a general audience, and may not apply to your circumstances. Some parts of the blog post talk about future changes. No one can know the future. Government policy is subject to change. Seek professional advice before taking any action.
What is the new tourist tax? It is a tax that will impact everyone who owns or operates Airbnbs or serviced accommodation. That’s why I want to get this message out to everyone in the property community. Please will you help me do that?
Please share this blog post on your social media pages. That way, we can ensure everyone is ready for this new tax. Sharing this article will really make a difference, so thank you to everyone who takes a moment to do so.
1. What Is The New Tourist Tax?: It Is A Tax On Working People!
Andy Burnham said he wouldn’t raise taxes on working people. However, this tax does so, indirectly. The costs will be passed on to guests, who are ordinary people staying in serviced accommodation. Many will be British holidaymakers or contractors needing a place to stay! This hurts the very people Labour claims to serve.
2. What Is The New Tourist Tax?: It Increases Your VAT Bill!
If you have a turnover of £90,000 a year, you need to pay VAT on your serviced accommodation. This tax is on top of that! The sneaky bit is, that if you raise your prices to cover the new tax, you will have to pay VAT based on the new higher price!
3. What Is The New Tourist Tax?: Small Traditional Hotels Will Be More Hurt Than Airbnbs!
If you run a traditional hotel business with staff, this will hurt you the most! Small traditional hotels have low margins, and added costs could kill some businesses. Serviced accommodation, done right, has high margins. If you run your Airbnb business correctly, this should have minimal impact.
What Is The New Tourist Tax?: Get Ready!
What is the new tourist tax? It is something every Airbnb and serviced accommodation provider needs to prepare for! The best way to do that is to ensure you are making a high enough margin to not be hurt by it. I can teach you how! Join me at my next introductory online training event!
We have different online trainings throughout the year, each teaching different things. Here is a sample of what you could learn on one of our online introductory webinars:
- The SECRETS to becoming a successful property investor
Get immediate and actionable insights to accelerate your property investment journey.
- How to LEVERAGE other people’s money to get started
Begin to understand the strategies to use to reduce the barriers to getting started.
- How to FIND fantastic property opportunities
Understand where property professionals source the best deals.
- How to RECYCLE your money again and again
Don’t just do it once, repeat the process to build your property portfolio.
Property investing is not just for the rich! Learn the strategies that thousands of people have used to not only start investing, but become financially free! Tickets are free, so book your property training webinar now. If you are ready to take action, I hope to see you very soon!
