Airbnb Irish Hosts to be taxed on income from 2014

Polo_Mint · 10-08-2015 01:47PM #1

Revenue are coming to get you.

<copy and pasted copyrighted article removed>

keithclancy · 10-08-2015 01:54PM

The email sent to users said that, following dialogue between it and Revenue, it had been determined that the company would now have to release information on all rental income earned by Irish hosts in connection with both foreign and Irish property as well as the rental income earned by non-Irish resident hosts who own Irish properties.

Badly written article, being Irish has nothing to do with it.

jimgoose · 10-08-2015 02:00PM

The clue is in the name, surely?

jam_mac_jam · 10-08-2015 02:01PM

Good. Did people think they could have income and not be taxed on it. The article acts like this is a big shocker.

StupidLikeAFox · 10-08-2015 02:02PM

keithclancy wrote: »

Badly written article, being Irish has nothing to do with it.

You've just gone full pedant

Never go full pedant

jimgoose · 10-08-2015 02:03PM

jam_mac_jam wrote: »

Good. Did people think they could have income and not be taxed on it. The article acts like this is a big shocker.

Well, you can. Up to €12,000 p.a. from renting out accommodation to lodgers in part of your house. The point is this doesn't apply to a business such as B'n'B, "Air" or otherwise.

Subcomandante Marcos · 10-08-2015 02:03PM

keithclancy wrote: »

Badly written article, being Irish has nothing to do with it.

I'd imagine the location being inside Ireland rather than the people offering the rooms is what is meant by "Irish".

I'd call the Travel Inn near Phoenix Park an "Irish Hotel" even though the owners are a foreign company.

Subcomandante Marcos · 10-08-2015 02:05PM

jimgoose wrote: »

Well, you can. Up to €12,000 p.a. from renting out accommodation to lodgers in part of your house. The point is this doesn't apply to a business such as B'n'B, "Air" or otherwise.

I know a rake of people renting rooms in their flats or houses doing exactly this, having lodgers paying their bills/mortgage but not declaring it to revenue.

jimgoose · 10-08-2015 02:12PM

Subcomandante Marcos wrote: »

I know a rake of people renting rooms in their flats or houses doing exactly this, having lodgers paying their bills/mortgage but not declaring it to revenue.

Legal, chief. From Section 7.1.32 of Ye Code of Revenue, "Rent-A-Room Relief":

6.1 Income below exemption limit

Where the gross income arising in a particular year from room rentals and ancillary services (where provided) does not exceed the exemption limit for that year, the income is exempt from income tax, PRSI, the health levy and the income levy, or the universal social charge, as the case may be (see paragraph 8.2). Where this happens the relief automatically applies without the individual having to make a claim to Revenue. However, where the gross income exceeds the exemption limit the taxable profits are computed on that gross amount in the normal manner, not just on the amount that exceeds the exemption limit.

Although the relief applies automatically, an individual who is required to submit an annual return of income must, nevertheless, enter the amount of exempt rental income on the return (in the ‘Exempt Income’ section of the form). The usual return of income is the Form 11. Revenue may also require certain individuals who are taxed under the PAYE system and who also have non-PAYE income to submit an annual return of income (Form 12).

The Backwards Man · 10-08-2015 02:13PM

The peer to peer business model is the snake oil of the early 21st century. And as with all such schemes, it will be the common five eighths that will come out of it badly.

Subcomandante Marcos · 10-08-2015 02:21PM

jimgoose wrote: »

Legal, chief. From Section 7.1.32 of Ye Code of Revenue, "Rent-A-Room Relief":

6.1 Income below exemption limit

Where the gross income arising in a particular year from room rentals and ancillary services (where provided) does not exceed the exemption limit for that year, the income is exempt from income tax, PRSI, the health levy and the income levy, or the universal social charge, as the case may be (see paragraph 8.2). Where this happens the relief automatically applies without the individual having to make a claim to Revenue. However, where the gross income exceeds the exemption limit the taxable profits are computed on that gross amount in the normal manner, not just on the amount that exceeds the exemption limit.

Although the relief applies automatically, an individual who is required to submit an annual return of income must, nevertheless, enter the amount of exempt rental income on the return (in the ‘Exempt Income’ section of the form). The usual return of income is the Form 11. Revenue may also require certain individuals who are taxed under the PAYE system and who also have non-PAYE income to submit an annual return of income (Form 12).

Nice to know!

Peregrine · 10-08-2015 02:30PM

Mod: OP, I've removed the copy and pasted article. Please edit your post and offer some input rather than newsdumping.

jimgoose · 10-08-2015 02:56PM

The Backwards Man wrote: »

The peer to peer business model is the snake oil of the early 21st century. And as with all such schemes, it will be the common five eighths that will come out of it badly.

Arrra shag you anyway, peer-to-peer everything worked just fine hereabouts until that thar god-dam Revenoo (s'ptoo) discovered the computers. :pac:

Wacker The Attacker · 10-08-2015 03:32PM

Just rent a f*cking hotel room in future

RasTa · 10-08-2015 04:06PM

Well that's going to kill Airbnb so since I doubt anyone could be arsed renting out their room paying 51%

Tigger · 10-08-2015 04:08PM

RasTa wrote: »

Well that's going to kill Airbnb so since I doubt anyone could be arsed renting out their room paying 51%

well they get to claim capital allowances against the room so its no soo bad

bazermc · 12-08-2015 05:05PM

Presume also liable to charge VAT at 9%, assuming they earn over €37,500 (services threshold)

http://www.revenue.ie/en/tax/vat/rates/decision-detail-02664.jsp

riclad · 12-08-2015 05:23PM

So what will happen is people will put prices up,
some people will stop providing the service,
air b b is good for our tourist industry it provides rooms at a fair price in different area.s
Not everyone wants to run a b and b full time.
you can do air b b for a few days or a few weeks in the summer.
Landlords who rent out flats full time get a 75 per cent tax credit on loan interest ,
how does this work for someone who does air bb for 4 weeks a year.
i dont think theres many people earning over 30k on air bb .
the only reason you need to declare rent a room to revenue is to show you are earning less than 12k per year.
some people will stop using air bb if theyt have to fill in forms and pay tax.
A tourist with 3kids rang up joe duffy ,says air bb is 3-4 times cheaper than staying in a standard bed and breakfast.

BoJack Horseman · 12-08-2015 06:20PM

riclad wrote: »

air bb is 3-4 times cheaper than staying in a standard bed and breakfast.

I would call shenanigans on that.
I've never ever seen a B&B charge more than €40 pppn in peak.
The AIRBNB's are not much cheaper, certainly not multiples.

But then its easy to be cheaper, you are not paying any tax, on what is essentially offering the same product.

Its grotesquely unfair

12-08-2015 06:27PM

keithclancy wrote: »

Badly written article, being Irish has nothing to do with it.

AirBnB is an American company. I read elsewhere that they release details of income earned by hosts in America to their Revenue and that they are going to do the same for Irish hosts at the request of the Irish Revenue. UK Revenue have no plans to seek the same information.

FrStone · 12-08-2015 06:32PM

BoJack Horseman wrote: »

But then its easy to be cheaper, you are not paying any tax, on what is essentially offering the same product.

Its grotesquely unfair

It is unfair, and it is only equitable that Revenue are now fixing the situation!

Who was honestly stupid enough to presume they were entitled to the rent a room relief on what is essentially income from a trade. People chose to be ignorant as it suited them not to pay tax.

Those who honestly believed rent a room relief applied would have filled a return claiming the relief. I doubt many did though... If they did it would be considered as mitigating circumstances when revenue charge interest and penalties.

It's a shame the details were only handed over from May 2014 and not from when they first had Irish members. However it is a bit of relief that they have also handed over the date people were first registered in the site, which makes it easier for Revenue to work out of money is being hidden from them.

BoJack Horseman · 12-08-2015 06:38PM

Deleted User wrote: »

I read elsewhere that they release details of income earned by hosts in America to their Revenue.

Yes, AIRBNB give information to the IRS & the expectation is that the hosts will declare it on their annual returns.

The AIRBnB website mentions that EU hosts may have to pay VAT to their respective Revenue depts

Airbnb Irish Hosts to be taxed on income from 2014

Comments