IRS is chasing holiday home earners suspected of not paying enough taxes as the short-term rental market booms
- So-called ‘nudge’ letters have been sent by HMRC to some 1,000 people
- people who normally do not rent out their homes, now want to earn money
Holiday home owners who are suspected of paying too little tax are being chased by the government.
So-called ‘nudge’ letters have been sent to around 1,000 people who now risk a formal investigation by HM Revenue & Customs.
The short-term rental market has boomed and people who would not normally rent out their homes are now using rental websites to make money.
A typical landlord can earn just over £6,000 a year, the vacation rental business Airbnb says, and more than a third do it to make ends meet.
So-called ‘nudge’ letters have been sent to around 1,000 people who now risk a formal investigation by HM Revenue & Customs
A typical host can earn just over £6,000 a year, says vacation rental company Airbnb, and more than a third do it to make ends meet (STOCK IMAGE)
HMRC would use information from such websites to identify those renting out properties without reporting income, the Financial Times reports.
The most recent data from 2020 shows that 127,000 people rented out a furnished holiday home.
Airbnb said it has shared income information about hosts with the IRS. HMRC was asked for comment.