Following the new regulations introduced by HM Revenue & Customs, self-catering agencies and online booking platforms will now be required to collect certain personal details from individual property owners. The changes came into effect in 2024 and require booking platforms such as Cornish Riviera Holidays, AirBnB and others to automatically report owner income to HMRC. Within this guide, we explain what these changes mean for you as a property owner and why we are requesting this information from you.
Why are these changes happening?
The UK government has set out to improve tax compliance by making income information reporting an automatic process. Previously, online booking platforms were required to report information on owner income to HMRC upon request only.
It is important to note that this law does not change how much tax you need to pay or how you pay it. It has been put in place to ensure income is reported more efficiently and transparently to HMRC. HMRC have produced their own guidance on these changes, which can be found here.
What information will be reported to HMRC?
- Property details: including street address and land registry number if it is available.
- Individual owner details:full name, primary address, date of birth, bank account details, and any known tax identification numbers.
- Company details, if applicable: legal name, address, company registration number, and tax identification number.
- Income information: HMRC refers to income as ‘Consideration’—any cash, credit, or equivalent paid to you as the property owner. We are required to report the net income (after deducting fees, commissions, and taxes) and the breakdown of deductions. Our reporting must be done on a cash basis, not on an accrual basis.
We would like to reassure you that Cornish Riviera Holidays will be storing this additional owner information safely and securely against existing records in our system.
FAQs
Will this apply to all owners who market their holiday let through a booking platform (eg Cornish Riviera Holidays Ltd, 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.
Does this include all accommodation types? E.G. glamping?
It is worth noting that at this stage, we do not have all the information. This requirement is still being developed by the government so where some areas may seem unclear at the moment, as soon as we have further information, we will update this guide and add further answers to frequently asked questions.
Can I report my income to HMRC independently?
While Cornish Riviera Holidays are required to report your income, you are still responsible for submitting your own tax return. You should include all income from your property or properties in your tax return, regardless of platform reporting.
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. We’re awaiting clarification from HMRC for the TIN if you are operating within a partnership.
There are multiple owners of my short term let. Do we need to do anything differently?
As we cannot disaggregate the total amount to show individual shares of the income, we are instructed to report the total income from the property as if it were entirely earned by each seller.
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 displaying this information on your owner portal so you can view it whenever you want.
How can I ensure my data is reported correctly to HMRC by Cornish Riviera Holidays?
You should regularly review your income and personal data shared with us via your online platform. Ensure that all information is accurate and up-to-date.
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 if you’re VAT registered.
What happens if an owner does not cooperate with Cornish Riviera Holidays?
It will depend on the platform as to how they communicate and manage the data collection from their short term let owners. 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.
Conclusion
As the HMRC rolls out these regulations, we, as your agency, are committed to supporting our property owners through this transition. We encourage owners to stay informed and work closely with us to ensure compliance. Should you have any further questions not covered by this guide, please contact us at info@cornishrivieraholidays.co.uk
