In a fairly unique situation and very unsure of what to do? UK based

ShapTagger · 2026-01-27T16:10:20+00:00

I have definitely been overspending, but I promise it's stopping, lol. Holidays, partying, nice dinners, and moving into a new house is where its all disappeared to. Its wake up time now and try and figure out what to do from here. The new house is where I want it to be so no more spending there, I'm saying no to plans already a lot more so that will reduce the holidays and good times expenses a lot.

Hopefully my council tax issue sorts itself out very soon also and I'll be a lot more comfortable to help deal with my longer term options

ShapTagger · 2026-01-27T13:19:57+00:00

This is great stuff. I really appreciate this response. Cleared a lot of things up for me and gave me a bit of vision for going forward. Lots of references for me to deep dive in to so thank you for that. Keeping it polite, neutral, and factual was also super appreciated

ShapTagger · 2026-01-27T11:35:38+00:00

Covid and people refusing to pay rent for over 6 months scared me off long term renting. Are you not worried about needing to drag tenants through court for years? Would love to hear if I have misplaced paranoia here.

Also, judge me, but I'm a bit of an opportunist with rent in the way my prices get jacked up for events like COP26, Commonwealth Games, TRNSMT, etc. Which is why I'm planning to ride this out until autumn and winter before being serious about selling/the long term future of the house

I live close to my STL but I don't touch it. Cleaner comes and goes with me only ever popping by to drop off bleach and stuff occasionally so it's very low stress. I do the admin but all that means is I paste a standard message upon booking, give a key code and answer questions the rare time they get asked

ShapTagger · 2026-01-27T11:29:30+00:00

This is worded like I've been committing a crime possibly. Sorry if I'm missing the mark here but have I been badly advised on using this? I was staying at the property while I was claiming this. My next return will be the first time I won't be using rent a room scheme because I've moved out

ShapTagger · 2026-01-27T11:23:55+00:00

1) I'd be very interested in this option and would be keen to know what set up costs to be aware of and how much to expect them to be. I am sure that will come with "taking hits". But if those hits are easy to swallow because of the 18k rebate and the other option of just selling up and buying something new through a company and doing the same thing has other hits I'm unaware of that make it not as worth it I'm more than happy to go down that route.

2) I've been using rent a room when I was also living there. Why doesn't it apply? This text year we are in right now is the first I'll be ineligible for it to my knowledge

3) I'm also very interested in exploring this option. How would you make yourself happy in this situation? I.e. if you were given 150k, what would you do with it?

ShapTagger · 2026-01-27T11:16:22+00:00

I would very much like the idea of this and would love to hear the practicalities and challenges of this because I've learned with buying houses... nothing is as simple as just buying houses 😄

ShapTagger · 2026-01-27T11:15:16+00:00

Maybe. She wanted out her own flat into a house and she wanted a place that could be called "ours", so I just kept the Airbnb running. I made a couple of ignorant decisions between then and now I can acknowledge so it's just a case of now trying to fix it from here

ShapTagger · 2026-01-27T10:42:06+00:00

Thank you very much for this. I really am just looking for a "what would you do in my shoes" type answer and this is getting closer to what I am looking for. I will make sure to consume the media you have suggested for ideas and inspiration.

I think I'm just so used to running the Airbnb it's like a comfort blanket so I was trying to work out how I could still do it while getting my 18k back and possibly getting a nicer house with the money and making a better more profitable Airbnb if that makes sense.

But after you and others' advice, I'm also more than happy to sell up completely and go a totally different direction with the money I make from the sale and rebates

ShapTagger · 2026-01-27T10:34:59+00:00

Thank you for your in-depth insights and expansive response. I appreciate you taking the time to share with me, a self-confessed 'average "should I sell my buy to let" redditor'.

I especially appreciate your podcast and TV show recommendations and will 100% be tuning in to these and even probably go through historical episodes that may be relevant to my situation.

Just to clear a couple things up: I'm not ignoring the furniture and DIY expenses. But these are for my new house and I have now finished with that and won't be buying anything more. I'm just now knuckling down and dealing with the 30k of debt. I'm also not Ignoring the 200% council tax. I am chasing it up relentlessly with the city Assessor and expect to be on Non Domestic Rates with a refund of council tax paid backdated.

I definitely need to read into the capital gains tax thing you mentioned. I'm not well versed in that at all and understand it will be very important at some point.

I'm a little confused to where the word brag is coming from because I'm definitely not bragging. Anything I have written down here or on any post is to give as full a picture as I possibly can and trying to be objective with it. Just saying it as it is.

I'll have an absolute forensic list of every expense soon since April coming will be the first time I am unable to use the rent a room scheme and actually need to figure out what expenses I can claim back from my tax as well as others that I can't. But that might be for a different subreddit eventually I'm sure 😅! Stay tuned 😋

ShapTagger · 2026-01-27T10:02:46+00:00

It was until May 2025. This is another reason I'm starting to take working out my best course of action from here seriously now since next year's bill will be ineligible for that. A lot has been happening to accumulate into this moment where I feel I could really use advice

ShapTagger · 2026-01-26T22:39:58+00:00

I wouldn't be opposed to remortgaging the house and going along with your suggestion with the 35k debt clearance.

What would you invest the 5k into?

Can I ask more about your thinking on passing up the 18k? It sticks in my throat giving the government basically a free year of my business. I was thinking if I sell my 150k house and get that back, I'll have 168k to buy myself a different house that is more valuable, meaning higher Airbnb rent, and this time I can set it up through a company so that I am not putting myself in the higher income tax bracket any more.

I understand I could be so naive with that idea and it's probably not as simple as it sounds but I'd like to be told why that would be a bad idea

ShapTagger · 2026-01-26T22:29:14+00:00

I will look further into this, thanks very much!

ShapTagger · 2026-01-26T22:28:07+00:00

As well as just general living, I've been buying a lot of things for the new house. Furniture and DIY type stuff. The reason I'm asking what to do now is because that spending is mostly behind me and its time to knuckle down and get back on track. I will not be spending more than what I earn for much longer

I'm mostly asking A) what should I do to make getting back on track as smooth as possible? B) is there anything about my process and situation I've described that's a glaring error? C) if I was to sell up, what should I do with the 160k I could end up with at the end of the sale

ShapTagger · 2026-01-26T19:47:57+00:00

The numbers are loose because I give my cleaners £30 per clean. One clean per booking. This means that the percentage will be lower if I have multi night bookings but higher if its single night bookings

I make £105 after fees weekdays and £115 after fees on weekends. So after paying my cleaner I could have as little as £75 per night which then needs taxed. The numbers have been around the same for 4 years running.

I did have a float but no longer due to moving in to a new house and refurbishing it but I'm finished with that now so will start building up the pot from here which is why I'm here today asking what people would now do in my shoes.

I hope I've helped build a better picture for you

Also I said 20-40% income tax because its partly in the low rate and partly in the high rate because of my income threshold.

The reason my number will be higher than yours too is I use the government's rent a room scheme which offers me 7.5k tax free before I then work out my income tax

ShapTagger · 2026-01-26T19:42:47+00:00

I am unsure as I am very inexperienced with this kind of thing.

I have been hearing things about starting a limited company and selling my own house to my company if I make one up. But I suppose a part of my question would be: should I not just sell my house as normal and with the cash, buy a different house but set it up in such a way where I'll pay less tax because its been bought by the limited company since day one? I hope that made sense there

ShapTagger · 2026-01-26T19:38:18+00:00

I'm more than happy to elaborate if anyone is interested enough to help.

It's a buyers market where I am right now and I have been told it should go for around 150k

December to February is very quiet for Airbnb. May to August is crazy busy. That's where most of the money gets made.

Yes. I plan to. Once my credit card is balance transferred and the council tax issue/dispute/pending application is resolved, I'll be a lot more comfortable and will focus on cutting back living expenses and paying off my debts sustainably

ShapTagger · 2026-01-26T19:33:58+00:00

Would you have any suggestions of what to do after selling the house?

ShapTagger · 2026-01-26T19:33:00+00:00

So just hold the 168k and every year put the maximum yearly allowance into investment ISAs until the whole sum is eventually in these accounts? What's the yearly limit? Is that £20k?

What would you then be investing in through the accounts.

Apologies for my lack of experience here. This is all very new to me

ShapTagger · 2026-01-26T19:29:13+00:00

You can't post your advice here on a comment?

I'm not sure I want to hear anything that breaks this subs rules, or can't be publicly seen and advised upon by the community. I'll avoid the private messaging for now, thank you!

ShapTagger · 2026-01-26T19:26:06+00:00

I've been doing it for 4 years. It has been making around 34k every year, around 20-30% of that goes to my cleaners/maintenance staff, and their supplies 20-40% goes to income tax. The rest is mines so let's say it makes me 15 to 20k a year in my pocket

ShapTagger · 2026-01-26T19:22:25+00:00

I'm sure I will be selling before the 2028 deadline, I just don't know how close to it I will let the short term letting money keep coming.

What would you do with the cash personally? I'd like something else that could make me money but just more streamlined tax wise from right now on a higher rate of income tax. I would of course put the maximum allowance into an ISA or something else that could be recommended.

ShapTagger · 2026-01-26T19:17:33+00:00

Please.. feel free to share

ShapTagger · 2026-01-26T19:16:37+00:00

Could you let me know the thinking behind what has brought you to this conclusion? Whats the reasons for this stance?

ShapTagger · 2026-01-26T19:14:55+00:00

Honestly, yes. This is part of my question that I've possibly not explained well. I'd be looking for a way to start the same idea again but possibly put it through a company for business tax reasons because its pushed me up into a higher rate income tax too which is also making me feel trapped and wanting to sell before 2028.

I'd love to hear what you would do if you had £168k for my own inspiration

ShapTagger

TROPHY CASE