HMRC is reminding customers who own short-term letting properties to report and pay tax on their earnings in an effort to stamp out tax evasion.
This includes short-term landlords who use sites such as Airbnb and Booking.com to let out their properties.
According to the latest agent update, the campaign will encourage these taxpayers to officially report their income and meet their obligations to HMRC.
Customers who rent rooms in their own homes do not need to declare their rental income unless they earn more than £7,500 per tax year. This limit drops to £3,750 if two people receive income from that same property.
However, this tax relief does not apply to income gained from letting additional properties. Instead, hosts can receive a £1,000 tax-free allowance on any rental income from second homes.
HMRC will use various information they hold on taxpayers, such as details of property rentals, to identify which customers to target in their campaign.
In the latest agent update, HMRC said:
“We’re making customers aware that if they’ve earned income from short-term property lettings, they need to let HMRC know because they may need to pay tax on their earnings.”
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