Taxman chases holiday home earners suspected of not paying enough tax

2023-02-26

Taxman chases holiday home earners suspected of not paying enough tax as short-term letting market booms

So-called ‘nudge’ letters have been sent by HMRC to around 1,000 people
people who do not normally rent out their homes are now wanting to cash in

Holiday home owners suspected of not paying enough tax are being chased by the Government.

So-called ‘nudge’ letters have been sent to around 1,000 people who now risk a formal inquiry by HM Revenue & Customs.

The short-term lettings market has boomed, and people who would not normally rent out their homes are now using lettings websites to cash in.

A typical host can earn just over £6,000 a year, the holiday rentals firm Airbnb says, with more than a third doing it to make ends meet.

So-called ‘nudge’ letters have been sent to around 1,000 people who now risk a formal inquiry by HM Revenue & Customs

A typical host can earn just over £6,000 a year, the holiday rentals firm Airbnb says, with more than a third doing it to make ends meet (STOCK IMAGE)

HMRC is said to be using information from such websites to identify those who let properties without declaring the income, the Financial Times reports.

The latest data from 2020 shows 127,000 people rented out furnished holiday lets.

Airbnb said it shared earnings information on hosts with the taxman. HMRC was asked to comment.

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