As part of a deal in respect of Airbnb’s own unpaid tax, Airbnb has passed onto HMRC the detail of incomes earned by its landlord App users who rent out property in the UK.
Individuals must pay tax on income generated from second homes or rooms let out when that income is over £7500 or £1000 per annum respectively. Details of income received via the AirBnb app by 225,000 people for tax years ending 2018 and 2019 has been passed to HMRC for them presumably to verify against their own existing records.
When considering letting out property there are various legal obstacles that need to be considered. Whether it is the tax repercussions, or whether mortgagee or superior landlord consent is required, the implication of any restrictive covenants on the title or complying with regulations and planning restrictions. Getting any of these wrong can mean that what was hoped to be a relatively easy form of income can turn into a legal headache.
If you require assistance in anything relating to property there is someone at Hewitsons who can help. Please contact Sarah Humble on 01223 532704 or click here to email Sarah.