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£10k grants being handed out to Airbnb hosts


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Who would have thought, Airbnb hosts who are on business rates (not sure how common this is), are claiming and according to an Airbnb Facebook group I’m a member of, receiving £10k grants PER PROPERTY!

This is surely complete abuse of the system and is providing the hosts with significantly more income they would have otherwise got from renting out the property! 

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I'm not sure that money has been apportioned yet, not sure they'll get it either at the end of the day

 

https://www.gov.uk/government/publications/coronavirus-covid-19-guidance-on-business-support-grant-funding

 

I'm passably sure that business rate relief is not assessed on a per property basis and that if the sum of all the business rate valuations is more than 15k they'll get nothing. That's basically anything bigger than a 2 bed apartment AFAIK.

Edited by Si1
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Its very popular around here just go to voa agency and then search business rates valuations for x postcode under th category holiday accommodation.

243 near me and most under 15k

yes thats higher than c tax

but as a small business you can get a total exemption under a certain level.

Edited by Fromage Frais
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If they've received small businesses rate relief (and as a result not paid business rates) in the past then they will be entitled to a 10k grant. 

 

That is dependent on actually being registered with the council. 

 

The entitlement is entirely dependent on if you got a letter back in March detailing the rateable value and relief that was due. 

 

I suspect most won't have a rateable value and so won't be entitled to anything

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3 hours ago, Peter Hun said:

AirnB is a part time rental, nobody would pay business rates, its stonkingly high.

That’s the problem, it’s not as they get relief and end up paying nothing. It’s a complete scandal. 

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44 minutes ago, Rian1988 said:

That’s the problem, it’s not as they get relief and end up paying nothing. It’s a complete scandal. 

Converting a residential property into a business is not easy. You'd need planning permission and it maybe impossible.

Why would anyone have registered for business rates for AirnB, its bonkers.

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28 minutes ago, Peter Hun said:

Converting a residential property into a business is not easy. You'd need planning permission and it maybe impossible.

Why would anyone have registered for business rates for AirnB, its bonkers.

It’s required when your rent for more than 140 days

https://www.gov.uk/introduction-to-business-rates/self-catering-and-holiday-let-accommodation

It’s very simple to change over and doesn’t involve planning permission. 

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So second home owners could declare it to be a commercial holiday let, meaning no Council Tax to pay, then if their declared letting income is less than £6k p.a. they don't have to pay business rated either.

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This is quite true - if you were getting small business rate relief on 11 March (a good wheeze to avoid council tax but paying no business rates) you get a £10,000 grant. Normally requires you to have one property only such as a holiday let with a notional rental value of £15k or less,  

Applies in England, Wales and Scotland - but not NI.

But local authorities can in theory exercise discretion not to give the grant - hopefully some will!

https://www.walesonline.co.uk/news/wales-news/loophole-could-allow-owners-holiday-18107800

Edited by MARTINX9
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If the rateable value is more than 15k and less than 51k then they would qualify for the £25k grant, right?
 

15 hours ago, nome said:

So second home owners could declare it to be a commercial holiday let, meaning no Council Tax to pay, then if their declared letting income is less than £6k p.a. they don't have to pay business rated either.

No, they do not get to decide. If its available for let for more than 140 days (in England, Scotland and Walers) and actually let for more than 70 days in an year (in Scotland and Wales) then its subject to business rates, otherwise not. See https://www.gov.uk/introduction-to-business-rates/self-catering-and-holiday-let-accommodation and  the equivalent Scottish page.


Whether they get small business relief and grants depends on the rateable value. I do not think the actual income comes into it.

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On 20/04/2020 at 12:52, richmondtw said:

Extraordinary if this is happening

If they are registered to pay rates and claim small business relief, essentially paying nothing, then qualify for 10k.

I could give a couple of examples that I know of that got 10k, one running part time business from home(catalogue rep). Another has a lock up and an is essentially just storage. Both instances council got in touch and said claim your 10k just by filling in a form.

Its a give away, there are winners and loses.

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12 hours ago, HovelinHove said:

Share that ******ing video with everyone you know. BTL and Airbnb vermin should not get a penny in bailout money. Write to your ******ing MP.

I reckon there is a good chance people taking advantage of this will get bent over and given a good showing too once things calm down

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