Understanding the New HMRC Regulations for Short-Term Let Owners
Tuesday 21st January, 2025 by Lauren Maltas
You may be aware that as of 1st January 2024, the government requires UK agencies and online booking platforms to share annual income details of short-term let property owners with HMRC automatically. In this guide, we’ll walk you through everything you need to know about these new regulations, including key deadlines, reporting requirements, and what they mean for you as a property owner.
Designed to improve tax transparency and compliance, the new regulations aim to simplify income reporting for everyone involved. While these changes don’t affect the amount of tax you pay or how you pay it, they do introduce mandatory reporting requirements for intermediaries. Whether you’re a first-time host or a seasoned professional, this guide will help you navigate the updates with confidence and ease.
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What are the new HMRC Intermediaries regulations for short-term let owners?
What are the key dates and requirements for platforms?
What information will agencies and booking platforms be expected to report to HMRC?
Will this apply to all owners who market their holiday let through a booking platform (eg Host & Stay, Airbnb, VRBO etc)?
I am not resident in the UK – does this affect me?
What happens if I take direct bookings through my own website?
I have been an owner with your agency for several years, when will you be reporting my income information to HMRC?
I am a new owner with your agency or have become a part of your agency through a recent acquisition, when will you be reporting my income information to HMRC?
As my agency you do not currently know my National Insurance number or Date of Birth – can I send this information to you now?
Will I be able to see the information my agency report to HMRC?
Can I report my income to HMRC independently to avoid platform errors?
What should I do if I disagree with the income reported by my agency?
I am VAT registered – how does this affect me?
What happens I choose not to cooperate with my agency or do not provide the information required?
Is the personal data I provide stored securely?
What are the new HMRC Intermediaries regulations for short-term let owners?
The Government has introduced new regulations for UK intermediaries such as agencies and online booking platforms. These changes, effective from 1st January 2024, aim to improve tax compliance and transparency by mandating annual income information sharing from property owners to HMRC through these platforms.
This law does not change how much tax you need to pay or how you pay it.
Guided by the HMRC manual, this document provides a summary of deadlines, mandatory requirements, potential penalties, and a list of frequently asked questions. It’s designed to assist our property owners in understanding and adapting to these regulatory changes.
It is important to note that under Paragraph 1, Schedule 23 to the Finance Act 2011, all agencies or booking platforms are already required to report information on owner income to HMRC. The change applied from 1 January 2024 is that this reporting must now be automatic rather than upon request.
What are the key dates and requirements for platforms?
This has already passed through government, and it has been mandatory for platforms to collect data from the 1st January 2024. This is with the expectation that platforms will report on a full 2024 calendar year by the 31st of January 2025. Below is the timescale outlined:
- Reporting period: The scheme operates on a calendar year (1 January – 31 December).
- Reporting frequency: Agencies and Booking Platforms will need to report data quarterly within a calendar year.
The dates for this are:
1 January – 31 March
1 April – 30 June
1 July – 30 September
1 October – 31 December
- First annual report: Agencies and Booking Platforms must submit their initial report by the 31 January 2025, covering the period from 1 January to 31 December 2024.
- Transitional period: For the first year (2024), Agencies and Booking Platforms are not required to provide this information to the HMRC for owners who were contracted to them prior to 1st January 2024. Their first reporting period can be postponed until 2025 (due 31 January 2026).
What information will agencies and booking platforms be expected to report to HMRC?
- Information about their platform including the company’s registered name, address, and Tax ID number.
- Information about the individual properties listed on their platform including street address, and land registry number if it is available.
- Short term let owner’s details. This includes full name, primary address, date of birth, Financial Account Identifiers, and any known tax identification numbers.
Will this apply to all owners who market their holiday let through a booking platform (eg Host & Stay, Airbnb, VRBO etc)?
In simple terms, yes. The only exclusions are non-profit models, Government entities/local authorities, large hotel providers, and quoted companies.
I am not resident in the UK – does this affect me?
Yes. Income earned in the UK by all our owners, regardless of where you live, must be reported to HMRC. It’s essential to ensure that all the necessary information has been provided to us, including any international tax identification numbers.
What happens if I take direct bookings through my own website?
Income from your own website is not considered under the scheme but would need reported normally via your own tax return.
I have been an owner with your agency for several years, when will you be reporting my income information to HMRC?
If we successfully gather all necessary identifying details within this year, you will be included in our 2024 report, required to be submitted by 31 January 2025. If we do not have your information by the end of the year, your first reporting period will be the 2025 calendar year, which we will need to submit to HMRC by 31 January 2026.
I am a new owner with your agency or have become a part of your agency through a recent acquisition, when will you be reporting my income information to HMRC?
If you joined Host & Stay after 1st January 2024, the 2024 calendar year will be your first reporting period. We must report your information to HMRC no later than 31 January 2025.
What are my Financial Account Identifiers and Tax Identification Numbers?
Financial Account Identifiers generally refer to your bank account details, which include the account number and sort code. We already have these details on file, so there’s no need for you to submit them again.
As for Tax Identification Numbers (TINs), these vary depending on whether you’re an individual or a company. For individuals, your TIN is your National Insurance Number. If you’re a company, the TIN would be your Company Registration Number.
As my agency you do not currently know my National Insurance number or Date of Birth – can I send this information to you now?
You can provide this information via the secure link you received in our recent email.
Will I be able to see the information my agency report to HMRC?
Yes, we must inform you what has been reported to HMRC. We intend on emailing you a statement of what has been reported before it is submitted.
Can I report my income to HMRC independently to avoid platform errors?
Whilst as your agency we are required to report your income, you are still responsible for your own tax return. You should include all income from your property or properties in your tax return, regardless of platform reporting.
What should I do if I disagree with the income reported by my agency?
Contact us immediately to resolve any discrepancies.
I am VAT registered – how does this affect me?
We must report the net amount paid, which will include an element of VAT.
What happens if I choose not to cooperate with my agency or do not provide the information required?
HMRC guidance advises suspension of listings and withholding of funds if an owner is uncooperative. We hope not to be in this situation and will work with owners to avoid any unnecessary penalties.
Is the personal data I provide stored securely?
Your data will be securely stored with a third party, Jotform Enterprise. With Jotform Enterprise, your data is encrypted at rest by default, ensuring the security of Personally Identifiable Information (PII). The Enterprise solution operates in a completely isolated environment, separate from the standard Jotform ecosystem, ensuring no data is shared with other users. Data is automatically encrypted as it is written, with each encryption key further protected by master keys managed by our hosting partner, Google Cloud Platform.
In summary, the setup provides disk encryption by default, while enabling HIPAA features adds an extra layer of database encryption for enhanced data security.