The press have reported Airbnb UK will be sharing earnings of Airbnb hosts with HMRC for 2017-18 and 2018-19 tax years. The information shared will be used to target enquiries for individuals who have not declared rental income. It has been confirmed by HMRC enquiries will begin in 2021-22.
What action should I take?
If you received income and have not declared this, you should review your accounts and take action to ensure this is rectified.
How can I amend earlier submissions?
The ‘Let property campaign’ is an option landlords can use when they owe tax through letting out residential property in the UK or abroad. This option is not available to be used by Companies or trustees.
Are there benefits through voluntary disclosure?
If a tax payer is subject to an enquiry and have not notified of an intention to disclose, much higher penalties will be enforced. If a self-assessment has been filed within the correct timescales with a careless mistake excluding rental income, penalties may be enforced for a maximum period of 6 years. By using the campaign however, the penalties charged will be much lower and where full disclosure is made before HMRC identifies the issue, it is possible the penalty will be reduced to nil.
How to take part in the ‘let property campaign’
First of all notify HMRC you would like to take part in the Let Property Campaign. Advise HMRC of all income, gains, tax and duties not previously notified and make a formal offer for payment. Settle the tax amount owed and assist HMRC with any enquiries they have during the process.
What happens if I fail to disclose earnings
In the event of HMRC discovering income has been omitted, much larger penalties will be imposed, potentially triggering an investigation of a period of up to 20 years.
Need professional advice?
Call AJ Accountancy for assistance if you require a professional to assist you with correcting your earlier tax submissions on 01234 713151
