According to Reuters, Airbnb stated that the company will share data with HMRC regarding the earnings of landlords using their platform in the UK in the years 2017/18 and 2018/19.
The data provided by Airbnb will enable HMRC to target UK hosts who have not declared their lettings income for 2017/18 and 2018/19. There are around 223,000 active Airbnb hosts in the UK.
The Airbnb UK accounts also show that the company have paid an additional £1.8m in tax, following an investigation by HMRC.
The deadline for making an enquiry into a self-assessment tax return for 2018/19 is 31 January 2021. However, HMRC are entitled to go back up to 20 years for enquiry.
What And How To Declare
UK hosts letting a second or third home that generates over £1,000 (the trading allowance) in income in a tax year are entitled to file a tax return. The trading allowance was introduced in the 2017/18 tax year onwards and in this case, applies to letting income that does not fall within the rent-a-room relief allowance of £7,500.
If the landlord has already submitted a tax return, it should be amended as soon as possible. The 2018/19 tax return can be amended by 31 January 2021.
If the omitted property income or gains relates to tax years prior to 2018/19, the taxpayer should disclose under HMRC’s let property campaign.
The let property campaign is open to landlords who let residential property in the UK. Using the let property campaign will mean the penalty charges will be lower than that if HMRC contacts the taxpayer directly. If full disclosure and tax payment is made before being contacted by HMRC, the penalty can be reduced to nil.
If the let property is overseas, landlords should use the worldwide disclosure facility.
INTRODUCTORY MEETING
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DEBBIE DOLEGA
Partner - Personal Tax
Debbie is a Chartered Tax Adviser with over two decades of experience advising Private Clients with complex international tax affairs, including non-UK residents, non-domiciled individuals, trusts and personal investment companies.
ANDREW LEWIS
Senior Tax Manager
Andrew manages the firms personal tax department, including a portfolio of personal tax clients such as High Net Worth Individuals, Self Employed, Directors, Landlords, Non-Residents and Partnerships. Andrew also has significant experience in dealing with HMRC tax investigations and disputes including Section 9A enquires, the Worldwide Disclosure Facility (WDF), Code of Practice 9 and the Contractual Disclosure Facility.
DIANE HARPER
Tax Manager (ex-HMRC)
Diane has 38 years of experience in tax starting with 6 years at H M Revenue & Customs. She now manages a portfolio of 350 personal tax clients including high net worth individuals, Barristers, Self Employed, Directors, Non-Residents and Partnerships.
