Airbnb handed information over to HMRC

Airbnb handed information over to HMRC

One of the largest online marketplaces that connects homeowners or guests looking for accommodation, Airbnb, has been forced to share all of its users’ income details with HM Revenue & Customs (HMRC) to help them identify people who could potentially owe tax.  It is understood that the information passed to HMRC goes as far back as the 2017/18 tax year.  This information will help the tax authority identify those who have underdeclared income from letting their properties or not declared it at all.

HMRC have already written to some landlords reminding them of their tax reporting obligations with regard to rental income.  Anyone found to have under or undeclared rental income can face serious consequences and HMRC will not only look to collect the additional tax due together with interest, they can also impose penalties based on their perceived perception of ‘behaviour’; non deliberate, deliberate but not concealed or deliberate and concealed.  They also look at whether a disclosure made to them is ‘prompted’ or ‘unprompted’.  If you have already received a letter from HMRC it is likely that any disclosure necessary would be classed as ‘prompted’, whereas an ‘unprompted’ disclosure (i.e. you inform them of your rental income voluntarily before HMRC contact you) carries less severe penalties.

If you have already received a letter from HMRC and need assistance or if you feel you could be affected by the above and need to bring your affairs up to date, please contact Ian Saha on 01206 549303 or email isaha@hwca.com