Online platforms such as Airbnb are now obliged to provide HMRC with data about the payments it makes to individuals who let rooms on a short-term basis. HMRC is matching that data to tax returns and writing to taxpayers who have apparently not declared their rental income correctly.

In many cases rental income will be covered by rent-a-room relief (£7500 per year) where the let rooms are part of the taxpayer’s main home. If a separate property has been let out, income of up to £1000 per year will be covered by the property income allowance.

The HMRC letter is quite aggressive asks the taxpayer to sign a certificate of tax position and return that form within 30 days.

If you receive one of these letters, please let us see sight of the letter so that we can check whether a disclosure of underpaid tax is required.

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