Is anyone in the UK concerned they may receive a demand from HMRC for non payment of income taxes, and possible liability for business taxes? Am I right in thinking they’ll be focusing on the big players first i.e. LLC’s, before going after the people who’ve just tried to use it as a pension fund?
As I’m not one of the Big Boys, I’m not overly concerned. Like you, I used my B&B for a pension top up, particularly as I fell into the black hole of the rise in state pension age for women.
I didn’t make enough in any given year to fall within a tax band and I kept all of my operating receipts. If they come after me, I’ll do the accounts and will undoubtedly show a deficit!
I’m not concerned - I’m not one of the “big boys” and I’ve always reported my earnings to HMRC. I’d expect limited companies (LLCs is a US term) would have been more likely to have reported their earnings all along (and big companies would need to have been audited) so I imagine they’re more likely to come after individuals that didn’t declare any Airbnb income.
No because I declare my income and pay the taxes I owe @Susanq34
HMRC don’t just go after the big boys.
I’m not quite understanding the question. Hosts have to pay their taxes and have the appropriate business licences required by the area. So why would they be concerned?
I don’t understand the ‘pension fund’ comment either. Is the OP suggesting that there are hosts who don’t declare their income and pay taxes because they are earning money for their later years? And that somehow makes them exempt? We’re all doing that no matter what job we’re in.
It’s like the tenants who get caught listing on Airbnb in contravention of their lease agreement and say it’s not income, they’re just subsidizing their rent.
There seem to be a lot of hosts who think that all hosts are supportive of each other’s illegal business operations. Same goes for the ones who ask for help in “getting around” their HOA rules, or suggestions for “convincing” their landlord to let them host on Airbnb. (When I ask the latter if a guest plugs up the toilet and causes a flood, are they going to be prepared to pay for a plumber or are they just going to call the landlord and tell them the toilet’s overflowing, and expect the landlord to pay for the repairs, they never respond to that question- funny that.)
HMRC might also trawl Internet forums looking for people openly admitting that they haven’t declared their earnings. Just a thought.
My understanding is you only pay $750.00 in taxes on your first billon$ or so.
There are states like South Carolina that give age 65 and older residents a “homestead” exemption making their property taxes and requirements for rental reporting (if you live there) reduced.
I have two friends who have moved to SC because of this. Truth is when I hit 65, I will move too.
That’s irrelevant. What you are talking about is a legal exemption, not someone trying to run a business under the radar and hiding their earnings from the tax dept.
Funnily enough, Airbnb go a fair way to answering that question for you:
In general, the money you earn as a host on Airbnb is considered taxable income that may be subject to different taxes like income tax, business rates, corporation tax or VAT.
It’s your choice if you evade taxes due in the UK, but if they do catch up with you, the penalties can be (financially) severe. They can go back as many years as they want, and can demand to see your bank statements, both traditional and digital (PayPal, Payoneer etc).
Given that Airbnb is now sharing data with local authorities across the world, it may actually be your local council who capture you, wanting business rates (taxes) for your property, or a proportion if you are an in home host (dependent on circumstances).
Maybe we should just stop paying, and tell’em it’s for our “pension pot”.
I think I’d flee the country if I were you, maybe somewhere without an extradition agreement…
I think, judging by the responses here, people assumed I was admitting tax avoidance/evasion. Nowhere in my original post did I allude to that. I merely asked a question.
Why are you concerned then? Why would any of us be concerned?
It is taxable income and should be filed under 'income from holiday property '. That is unless you qualify for the rent a room scheme.
It would seem quite odd to ask a question about whether anyone was concerned about this, if you weren’t concerned. Or were you asking “for a friend”?