New regulations introduced by HM Revenue & Customs in 2024 require any digital platforms selling goods or services to retain certain information and pass on specific details about property owners to HMRC automatically.

The UK government is aiming to improve tax compliance and make it more efficient by automating the process of sharing income information. In the past, booking platforms only had to report owner income to HMRC when asked. This new law doesn’t change how much tax you pay or the way you pay it. It has been designed to make income reporting more straightforward and transparent.

HMRC has also released its guidance on these changes, which you can find here.

Please read on for more information on what this means for you as a property owner, what information we need, and why we're asking for specific details.

What information does HMRC need:

Property details: including the full 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: 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. 

All additional data will be stored safely and securely alongside existing records on our system. If we do not currently have the required data we will get in touch when we need it. 

Dates and deadlines:

First annual report: Our initial report must be submitted by 31st January 2025, covering income earned from 1st January to 31st December 2024.

Transitional period: Owners contracted with Aspects Holidays before 1st January 2024 will fall within the transitionary period, with the first report due by 31st January 2026, covering income earned in 2025. 

FAQs:

Does this apply to all owners using an online platform to market their holiday let?

Yes, these regulations apply to all platforms (including websites and apps) involved in selling goods or services. The only exceptions are non-profit models, government entities/local authorities, large hotel providers, and publicly listed companies.

My holiday let is owned by a company. Do we need to do anything differently?

Yes, we'll need to report certain information about your company, as noted above. We will ask you to check and confirm the details we have on file before submitting the report.

Does it affect me if I am not based in the UK?

Yes, income earned in the UK by any owner, regardless of where they live, must be reported to HMRC. We will require all the necessary information, including any international tax identification numbers. 

Can I report my income to HMRC myself?

Although we’re required to report your income, you’re still responsible for filing your own tax return; including all the income earned from your property regardless of any platform reporting.

Does this apply to all accommodation types?

Yes, it applies to all accommodation types, including glamping.

There are multiple owners of my holiday let. Do we need to do anything differently?

We’ll report the total income paid to each registered owner, but we can’t break it down by individual shares for each owner.

I’m VAT registered – how does this affect me?

We’ll report the net amount, including VAT if applicable. If we have your VAT registration number, we’ll include that in the submission to HMRC.

What happens if an owner doesn’t provide the required information?

If we don’t get the necessary details, we could face penalties from HMRC. We’ll work with you to avoid any issues and make sure everything’s in order.

How can I make sure my data is reported correctly to HMRC?

Keep an eye on your online owner portal, where you can review your income and personal data, and make sure everything is accurate and up-to-date. 

What if I disagree with the income reported by Aspects Holidays?

If you spot any discrepancies, please let us know right away, and we’ll help resolve the issue.

As these new HMRC regulations take effect, we're here to keep our owners updated and help to navigate the changes. We encourage owners to provide any information we need to make sure you're meeting the new requirements. If you have further questions or concerns, please get in touch at hello@aspects.co.uk and we’ll be happy to help. 

Tags: Owner update