Short-let landlords targeted by HMRC around Wimbledon

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28th June 2011

Short-let landlords targeted by HMRC around Wimbledon

Short-term lets, especially in London, especially around sporting events such as Wimbledon or the upcoming Olympics, represent a great opportunity for landlords – or property owners who don’t mind sharing or leaving their house for a while! Rents skyrocket over these short periods and can offer a great return.

However, income from rentals is subject to tax limitations as all income, and must be declared. The limit is £4,250 per year for a landlord renting out a room in their house, and even then must be declared even though is not tax liable.

HMRC officers are cracking down and focusing their efforts on landlords particularly around events such as Wimbledon, to find anyone dodging tax. This means some landlords risk their quick-buck over Wimbledon turning into a hefty loss as tax-dodging fines pile up!

What does this mean for you? As a landlord, whether renting your property long term or short term, you need to be aware of your tax obligations as HMRC becomes more and more vigilant. Declare all rental income on your tax returns; and think carefully about renting out your property ‘properly’ with all the correct contracts, even on short term lets, to keep everything airtight and above board. If you need any advice, do get in touch!