If you are a landlord, then you need to be aware that Airbnb UK accounts for the year to 31 December 2019 include a statement that the company will share data with HMRC about the earnings of hosts (those who let out property - i.e. you!) on its UK platform in the years 2017-18 and 2018-19.
Tax advisers, such as M&S are well aware that HMRC has been using its Connect data analysis system to scrape data concerning property income and gains from various sources. Having access to Airbnb data will allow HMRC to target enquiries into the tax affairs of any individual who has not declared their lettings income for 2017-18 and 2018-19. The deadline for opening an enquiry into a self assessment return for 2018-19 is 31 January 2021, if the return was issued and submitted on time. However, you also need to note that the discovery rules allow HMRC to go back up to 20 years in some cases. The data provided by Airbnb will certainly constitute a discovery for HMRC’s purposes, so up to 20 years will be open for enquiry. More information is available in this article from Accountingweb.co.uk
If you have any concerns, please feel free to contact us.
Julie Downie, Accounts Manager