Airbnb is a popular short-term rental portal. Owners and landlords can advertise their properties on the site where people looking for a place to stay for one night or more will see the ad and (hopefully) make a booking. In busy tourist areas it is a useful way of making money on the side if you have a spare room or a vacant home for a few weeks, but there are a lot of landlords who use the site to let multiple properties out on a short-term basis.
HMRC on the Warpath
Accountants are now warning landlords that HMRC are about to target anyone making extra money from letting out properties via Airbnb. Any money earned from property is classed as income and must therefore be declared to the tax man. If you are letting out properties via Airbnb, you run the risk of a fine if you don’t declare this income.
“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,” says Chas Roy-Chowdhury from the Association of Chartered Certified Accountants (ACCA).
Taxable Income from Property
If the rent you receive is a secondary income, you will probably have tax to pay on it, but if you are not sure whether it is taxable or how to go about declaring it to HMRC, it is a good idea to consult with a qualified accountant.
