HMRC Introduces New Regulations for Short-Term Let Platforms

The UK government has introduced updated regulations for short-term let platforms and self-catering agencies, including companies like Curated Property. These changes, effective from 1 January 2024, aim to enhance tax compliance and transparency. While the updates do not change how much tax is owed or how it is paid, they streamline the reporting process between intermediaries and HMRC.

This guide outlines the key changes, reporting requirements, and answers to common questions to help property owners stay informed.

Overview of the Changes

Under Paragraph 1, Schedule 23 of the Finance Act 2011, platforms such as Curated Property were previously required to report income information for property owners to HMRC upon request. The new regulations now mandate automatic data reporting.

Key Dates and Reporting Requirements

• Start Date: Reporting obligations commenced on 1 January 2024.

• Annual Report Deadline: Platforms must submit their first full-year report for 2024 by 31 January 2025.

• Quarterly Reports: Platforms are required to report data quarterly, on the following dates:

  • 1 January – 31 March

  • 1 April – 30 June

  • 1 July – 30 September

  • 1 October – 31 December

• Transitional Period: Property owners contracted with platforms before 1 January 2024 benefit from a transitionary period, with reporting delayed until January 2026.

What Information Will Be Reported?

Platforms are required to submit:

• Company details, including their registered name, address, and tax ID.

• Property details, such as the street address and land registry number.

• Owner information, including full name, primary address, date of birth, financial account identifiers, and tax identification numbers (TINs).

• Income information, defined as the net amount paid to owners after deductions for fees, commissions, and taxes, reported on a cash basis.

Penalties for Non-Compliance

All platforms must meet the specified deadlines and ensure accurate reporting. Failure to comply with these requirements will result in penalties imposed by HMRC.

FAQs

• Does this apply to all platforms?
  Yes, except for non-profit organisations, government bodies, large hotel chains, and quoted companies.

• Does this affect non-UK residents?
  Yes. All income generated in the UK must be reported, regardless of the owner's residency.

• Are direct bookings included?
  No, income from direct bookings is excluded from this scheme.

• What if I’m VAT registered?
  Platforms will report the net amount paid, which may include VAT. It is expected that VAT registration numbers will also be included in the reports.

• What happens if an owner does not cooperate?
  HMRC guidance advises platforms to suspend listings or withhold funds for owners who fail to provide the required information.

Next Steps for Property Owners

Property owners should:

• Ensure all personal and property information held by platforms is up to date.

• Respond to requests for additional details promptly.

• Include all property income in their own tax returns, regardless of platform submissions.

Conclusion

These new regulations represent a significant development in tax reporting for short-term let platforms. Curated Property is committed to supporting property owners through these changes, ensuring compliance and transparency. For further assistance, contact info@curated-property.com.