AirBnb to share info with HMRC !

Posted: 17/10/2020

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Landlords that list properties with Airbnb may now be investigated following a decision by the short-lets platform to share data with HMRC, according to accountancy firm, Grunberg & Co.

As part its agreement to report tax affairs to HMRC, Airbnb agreed to share accounts to 31 December 2019, along with hosts’ income in the financial years 2017/18 and 2018/19.

Alexander Kossoff, a partner at the independent accountancy firm, is urging all landlords that use the service to ensure that they have disclosed all their income.

He said: “According to previous reports from Airbnb, it estimates that the average annual earnings for a typical host are just over £3,000.

“Where someone uses the service to let part of the home that they live in they may be able to take advantage of the Rent-a-Room relief allowance of £7,500, which means they do not generate a tax reporting obligation below this amount.

“However, those hosts that rent out a second or third home, rather than part of their main home, cannot benefit from this same relief.”

He added that any amount over the allowances would, in most cases, result in a tax reporting obligation via a person’s annual Self-Assessment tax return.

He warned: “Airbnb’s decision to share income data with HMRC could lead to a rise of investigations against hosts if the tax authority feels that tax is outstanding.

“Hosts and landlords should, therefore, consider making a disclosure and payment to HMRC for any outstanding tax that is due.”

Those taxpayers who have already submitted a tax return for 2018/19 should be able to amend it before 31 January 2021.

Key One Property manage AirBnbs, serviced accommodation and short term rentals. E: office@key-one.co.uk

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