The Association of Chartered Certified Accountants (ACCA) has warned that HMRC is set to target those making money from renting out property through Airbnb.
Chas Roy-Chowdhury, ACCA head of taxation, said: “Money made by renting out a property through Airbnb will be classed as income and must be declared to the taxman. If you are using the website to rent out a property you own then I would strongly advise you to make the necessary declaration to HMRC.
“If you make a voluntary declaration to HMRC, rather than wait for them to come knocking, it is far less likely you will receive a fine. HMRC are under tremendous pressure from the government to increase the tax revenues collected and if they believe that you are deliberately withholding information about a source of income they will look to penalise you.
“If this is a second source of income is it likely you will owe tax on all income from the rental. If you are unsure you should seek the services of a Chartered Certified Accountant, who will be able to advise you how to declare this income and what needs to be declared.”