If you let out holiday properties or have switched to Airbnb or similar platforms, tax inspectors may be coming for you.
Accountancy firm UHY Hacker Young says HMRC is plotting a New Year clampdown on owners of holiday lets if they are suspected of failing to properly report earnings from the staycation boom of the last two years.
Neely Chauhan, a partner at the firm, says HMRC has the power to request information or documents from third parties such as holiday booking sites “for the purpose of checking the taxpayer’s tax position”. This includes entire databases of popular holiday booking sites.
“AirBnB has previously agreed to share information on income earned by its UK hosts as part of a 2020 tax settlement with HM Treasury. As part of the deal, the company agreed to pay an extra £1.8m in tax and share data on hosts’ incomes with HMRC” explains Chauhan.
The firm says owners of holiday flats and cottages will be filing their self-assessment tax returns that cover the first year of the Covid-staycation boom and may be tempted to under-report windfall earnings.
Chauhan adds: “With the boom in staycations driven by the pandemic, leading to a bumper season for UK holiday lets, it’s likely HMRC will come for their slice of the pie. HMRC will be checking tax returns from people who have let property for a jump in declared income to reflect the staycation boom. Their algorithms will fairly easily identify those holiday homeowners who they think are under-declaring income.
“As HMRC’s Let Property Campaign targeting buy to let landlords shows, the Treasury sees landlords as an obvious target for tax investigations and extra tax revenue. Landlords are recommended to make sure they are aware of their tax obligations before spending their summer ‘staycation’ windfall. Landlords who fail to declare unpaid taxes are ultimately risking fines and criminal prosecution.”
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While letting the big boys like amazon go scott free
Landlords just like the hard working motorists, easy target as usual. Those incompetent cockroaches in Westminster like easy targets.
Whatever about tax on an other tread. Her Majesty speech in Cardiff got it right.
I hope Shelter was listening who don’t supply any housing but are always taking about it.
She said the people that don’t do but talk about it are so irritating.
Tax inspection insurance at least covers the costs of a good accountant to defend you, costs myself and my wife £60 each a year.
If your are an NRLA member, this is included in the membership.
I'm very happy to see Airbnb landlords taxed properly as we who provide long term homes already are.
I would go further and abolish the £7500 tax free income many Airbnb landlords get. This was meant for those providing a long term home for lodgers in a host's own home, not for holiday lets or b&b.
Landlords with other properties let out can't even get the £7500 tax free for a genuine lodger in their own home.
I wondered how long it was going to take them, also the last 2 years have not been easy sailing for anyone doing anything…..the lockdowns crucified everything
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