Revenue has clamped down on Airbnb hosts with a reminder to declare income derived from the accommodation booking site or face tax, interest, penalties and the potential for prosecution. In response, Galway-based accountancy and tax advisory firm TJ Hyland & Co have reached out to Airbnb hosts with a free initial consultation to discuss their obligations to Revenue and what they need to do next.
TJ Hyland, owner of TJ Hyland & Co said Airbnb hosts may not fully understand Revenue’s treatment of Airbnb income and need advice from a taxation expert.
“Typically income derived from Airbnb does not qualify for rent-a-room relief, nor is it treated as rental income so cannot have losses offset against it,” he said.
“Revenue treats it as trading income or miscellaneous income depending on how often the accommodation is booked.”
Mr Hyland said most income derived from Airbnb would be considered miscellaneous income from short-term and occasional accommodation with deductions allowed for commission fees paid to accommodation booking sites, cleaning fees, the cost of breakfast provided to guests and reasonable allowances for utilities such as gas and electricity.
In 2015, Airbnb began supplying Revenue with information about hosts and the income they derive from the site for short-term and holiday accommodation. Revenue advised Airbnb hosts in recent written communication that they will be following up with compliance checks to ensure hosts have lodged their tax returns correctly and declared the income they have made via the accommodation booking site. Mr. Hyland said Airbnb hosts found not to have declared their short-term or holiday accommodation income to Revenue will be liable for tax, interest, and penalties.
“The bottom line is that if you received income from Airbnb and have not told Revenue about it, have submitted an incorrect tax return or haven’t submitted a tax return at all, now is the time to seek expert advice and get your tax affairs up-to-date.”
TJ Hyland & Co has proudly served Galway with expert tax and accountancy advice for 40 years. With taxation experts at the ready and decades of experience dealing with Revenue on behalf of their clients, the firm is pleased to offer a free initial consultation to Airbnb hosts to discuss how to get their tax affairs in order.
TJ Hyland & Co is located in Steamship House, Dock Street Galway.
To make an appointment for a free initial consultation, please telephone (091) 565 833.