Owners of holiday lets will face a crack down by HMRC if they fail to properly report their earnings.
HMRC has the power to request information from third parties such as booking sites, which includes access to their database of bookings. Significantly AirBnB has agreed to share information on income earned by its UK hosts as part of a 2020 tax settlement with the Treasury. As part of the deal AirBnB has agreed to provide HMRC with data on host’s incomes.
This means you cannot hide from HMRC when receiving AirBnB income.
Your responsibilities when it comes to reporting AirBnB income are to register the rental business with HMRC, report income and expenditure in the proper way, which may differ to that of an ordinary rental, and, for joint property owners, to consider in whose name the income is arising.
There is more scope to alter AirBnB letting income between spouse joint owners than is possible with ordinary rentals. Hence some tax planning opportunities.
If you need help with registering and reporting AirBnB letting income then Ellis and Co accountants in Chester can help. Speak to us to find out more.