Festivals and sporting events

The Taxman is warning people who rent their houses out to festivals goers and spectators of sporting events that the income received should be submitted to HMRC.

Paul Aplin, chairman of the ICAEW’s tax faculty said: ‘The taxman is prepared to chase even small amounts of tax and will take evasion of tax on short-term letting income seriously,’ Wiltshire Business Online reported.

‘Homeowners have a duty to inform HM Revenue and Customs of any tax liability,’ said Aplin. ‘If you let out all or part of any property and receive rent, this is treated for tax purposes as if you are running a rental business.

‘It doesn’t matter if you let just one small flat or many different properties,’ added Aplin. ‘Rent, after expenses have been deducted, is regarded as part of your total UK income as a taxpayer.’