Letting A Room Through Airbnb
HMRC will know about it ...
POSTED BY HELEN BEAUMONT ON 24/08/2018 @ 8:00AM
If you're thinking of letting a room through Airbnb you should know that HMRC is receiving data about landlords and how much income they're getting from these short-term lettings ...
If you're thinking of letting a room through Airbnb, you need to know this!
copyright: skdesign / 123rf stock photo (licensee)
This is because HMRC has now forced Airbnb and similar online companies to share customer income data with them. And this is historical too, so lettings you booked before they started doing this are also included.
"HMRC are using an analytical tool called Connect!"
It was written by BAE Systems to track and monitor income from such sources. It is the most advanced data gathering tool HMRC has at its disposal and 'connects' income such as this with individuals across the United Kingdom.
You may well be aware that you can earn up to £7,500 per year tax-free for furnished rooms under the Government's Rent A Room scheme, but you still have to submit a tax return to show HMRC your earnings.
To qualify for the Rent A Room scheme:
The room must be furnished
The relief cannot be used if you let your home whilst living abroad
The accommodation provided cannot be office space or business space
However, it is worth noting that following a consultation, HMRC is now considering restricting the Rent A Room scheme for property owners who do not live in the property they are renting at the same time as their short-term tenants.
"Would you like to know more?"
If you'd like to find out more about the tax implications of letting a room through Airbnb or similar online websites, do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking to work with an expert tax advisor with a wide range of tax experience, do visit www.essendontax.co.uk to find out more about me and discover how I can help!
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen’s specialist knowledge in tax planning and experience ensures every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.