Homeowners who rented out during Commonwealth Games must self assess to pay tax liability
Those who rented out properties during the Games as a short-term let may need to tell HMRC about any income they have received, by filing a self assessment tax return.
To help ensure homeowners correctly report their income and do not make mistakes on their tax returns, HMRC has been working closely with three leading online booking platforms to share information and advice direct to customers about their tax responsibilities.
The first £1,000 of income from a property let is tax-free and deductible expenses can be made such as energy costs, advertising and maintenance charges.
Homeowners letting out their property for the first time have until 5 October 2023 to register for self assessment. Letters already registered for self assessment need to file their return and declare any income received during the Commonwealth Games, and pay any tax owed, by 31 January 2024.
An HMRC spokesperson said: ‘The Commonwealth Games was a brilliant showcase for Birmingham and the West Midlands region, an incredible event which saw demand for places to stay go through the roof.
‘We want to make sure those who let out their property during the Games are fully aware of what tax they need to pay and how they can pay it – and help make it as easy for them as possible to do so.
‘Anyone who made any profit over £1,000 from letting out their home is responsible for telling HMRC. They can do this by completing a self assessment tax return on gov.uk.’