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The tax authority has launched thousands of investigations into those who make money from short-term rental properties. Get the latest top news stories sent straight to your inbox with our daily newsletter We have more newsletters Get the latest top news stories sent straight to your inbox with our daily newsletter We have more newsletters Personal finance experts have issued a warning over rules concerning holiday homes that could result in hefty penalties if broken. HMRC has begun cracking down on landlords who deal in short term rental properties, specifically those who fail to declare their revenue to the tax man.

According to Tax expert Andy Wood, the national payments authority has already launched thousands of investigations. Those who rent out holiday accommodations are already required to pay income tax at the standard rate on any money earned. However, Andy highlights that the HMRC is now "paying close attention" to those who don't correctly report their earnings.



Those who fail to meet their tax obligations risk serious consequences, including fines equating to 30 per cent of outstanding tax owed. Depending on the situation, serious cases can see people be handed prison sentences of varying lengths, ranging from five months to seven years. As reported by Bristol Live , he said: “HMRC has opened almost 2,000 investigations into landlords letting out via Airbnb or other short let platforms.

The number of tax inquiries has increased significantly, rising from 95 in .

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