Have you told HMRC about your Airbnb income? Made sure it’s on your personal tax return? If not, then the 2019 Airbnb accounts that have been filed with Companies House and HMRC include an interesting line that you should probably take note of.
The company is going to share data with HMRC about the earnings of hosts (the people who let out the property and get the money) in the UK for the 17/18 and 18/19 tax years.
Have you declared your Airbnb income to HMRC? If not, then they’re likely to find out and come after you with a targeted enquiry. And if they make a relevant ‘discovery’ then they can go back into even earlier tax years as well.
Isn’t technology wonderful?
Now there are some exceptions to do with the Rent-a-Room scheme, which you can check out at the Airbnb site by CLICKING HERE
So you can wait for HMRC to come after you, or you can take action yourself and make a voluntary declaration. Making the declaration before they come after you can result in a good deal – much lower penalties for a start. Yes, you’ve got to make good on any tax due, and there will be some interest to deal with, but you’ll pay less than if you just sit there hoping for the best.
We’d be happy to help you navigate the whole (and often confusing) tax system, so if this is something that’s going to affect you, don’t hesitate to GET IN TOUCH with us, and we’ll do our level best to help you. We can walk you through the whole system, explain the type of information that needs to be declared, and make the declaration on your behalf. Of course, while we’re doing that, we’ll also do all we can to make sure that any tax due is minimised.
Remember – if you haven’t declared your Airbnb income to HMRC, act now, and don’t wait for HMRC to find you. It’s much more pleasant to take control of the situation yourself, rather than wait for that brown envelope to hit the doormat….