HM Revenue & Customs (HMRC) is investigating Airbnb hosts who may not have declared all of their income. The investigation follows HMRC’s receipt of six years’ worth of property earnings information, which the online holiday let platform were forced to provide them with.
HMRC is understood to have already sent 800 letters to people who it suspects have not paid enough tax since February. If found to be correct, in addition to paying the unpaid tax, property owners could face interest and significant tax geared penalties. In a worst-case scenario, this could extend to criminal prosecution.
The holiday let sector is known to be a big area of risk for HMRC, with particular concern around undeclared rental income. The Airbnb information is just one example of HMRC using wider data points to enable data scrutiny in the sector.
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