TaxPersonal TaxFestival renting high on taxman’s agenda

Festival renting high on taxman's agenda

Warning issued that taxman will come down hard on people failing to disclose income from renting rooms to festivalgoers

The taxman will be keeping a close eye on people renting their homes as the
festival season kicks off.

Paul Aplin, chairman of the
ICAEW’s
tax faculty said: ‘The taxman is prepared to chase even small amounts of tax
and will take evasion of tax on short-term letting income seriously,’
Wiltshire
Business Online
reported.

The music festival season, coupled with sporting events such as Wimbledon and
the British Grand Prix weekend represents a cash cow for those renting out their
homes, but landlords were reminded not to forget their tax responsibilities.

‘Homeowners have a duty to inform HM Revenue and Customs of any tax
liability,’ said Aplin. ‘If you let out all or part of any property and receive
rent, this is treated for tax purposes as if you are running a rental business.

‘It doesn’t matter if you let just one small flat or many different
properties,’ added Aplin. ‘Rent, after expenses have been deducted, is regarded
as part of your total UK income as a taxpayer.’

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