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Taxman to target those renting properties through Airbnb

Taxman to target those renting properties through Airbnb

HMRC (Her Majesty’s Revenue and Customs) is set to target those making money from renting out property through Airbnb, ACCA (the Association of Chartered Certified Accountants) is warning.

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.”

This was posted in Bdaily's Members' News section by ACCA .