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Gloucestershire Business News

Airbnb data shared with HMRC

Airbnb has been forced to share users' income details with HM Revenue & Customs (HMRC).

It is part of a crackdown on holiday let owners who fail to declare their incomes, to help identify people who owe tax, as reported by The Telegraph.

Airbnb has shared data on users' earnings dating back to 2017-18. The information will help HMRC identify who is making money from letting their properties without declaring it.

Since February, HMRC has sent 800 letters to people it suspects haven't paid enough tax, reminding them that they need to disclose the income earned from letting out a property.

HMRC doesn't know how much tax in the sector is unpaid, but said it is "working to build a more detailed understanding of the holiday let sector and who is operating in it".

Previously HM Treasury reported that more than half of people using "sharing sites" didn't think they had to pay tax on their income from holiday lets.

If failure to pay tax was thought to be an innocent error, there may not be any penalty at all. But if it was perceived to be deliberate, property owners could face criminal prosecution and penalties of up to 30% of the tax owed.

People who have submitted incorrect tax returns or earned very large amounts of money are more likely to be found to be careless.

Airbnb operators who haven't disclosed their income are being encouraged to do so voluntarily through HMRC's Let Property Campaign, which would reduce the amount of any penalty.

People renting properties on Airbnb can make up to £1,000 a year before tax. Any profits above this threshold must be declared to HMRC.

Airbnb said it partners with industry experts across the UK to help hosts understand and follow tax rules.

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