It’s not too late to file your Airbnb tax return so if you missed the deadline, Taxback.com can help.
Earlier this year, there was a considerable amount of controversy when it emerged that Airbnb had passed the details of all hosts over to Revenue. Revenue ruled that income earned from Airbnb hosting activities doesn’t fall into the ‘rent a room relief’ category which means that it is subject to tax. Many people disagreed but Revenue wasn’t bending.
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This meant that many people were obliged to file their first ever tax return. The self-assessed tax return deadline was on 31st October.
So what happens if you haven’t filed your Airbnb tax return yet? Although Revenue can impose penalties for late fining, we cannot over emphasise how important it is not to put your head in the sand when it comes to your tax affairs. If you’re an Airbnb host that hasn’t filed a tax return yet, we advise you to do this as soon as possible.
If you’re not sure where to start, we can help. We have a dedicated service for Airbnb hosts.
Airbnb Host Story
Mary Kelly is retired and has been an Airbnb host in Dublin for three years. She was taken aback when she got the email from Airbnb back in August.
“It came in like a rocket in the middle of the night and there had been no warning that it was coming. It was totally confusing but I hoped when I went along to the meeting, things would become clearer,” said Mary.
“I left the meeting even more confused. I still didn’t know what I was supposed to do about my taxes and no advice was given. This was the first time I had to file a tax return and I didn’t have a bull’s notion.”
Mary got in touch with Taxback.com to help with her Airbnb tax return. As per our normal process, we gave her a dedicated Account Manager, Marian, who was there to answer all her questions and guide her through the process.
“The service was absolutely fantastic,” said Mary. “I can’t speak highly enough of them. Everything was geared towards the client and it was honestly one of the best customer experiences I have ever had. The fee was fair and the instructions were clear. I just had to provide my information and then Marian did the rest. I wasn’t even aware of some of things I could claim but I gave Taxback.com all my receipts.”
We advise all Airbnb hosts to keep a record and receipts of any expenses incurred through hosting activity. Revenue confirmed that this income should be treated as trading income and therefore it stands to reason that any allowable trading expenses should qualify as deductions in arriving at a taxable trading profit.
With the end of the tax year on the horizon, now is a good time to get your taxes in order so you can enter the 2016 with a clean slate.
Get in touch with us today and we’ll make a start on your Airbnb tax return.