Holiday home owners will have their bank account details scraped by HM Revenue and Customs (HMRC) as part of a global tax crackdown.
From January 2024, rental platforms, food delivery apps, freelance websites and others facilitating various “side hustles” (an extra job to create a second income) will be ordered to share users’ details – including bank account information – with HMRC as the taxman clamps down on people failing to declare extra income.
Up to five million businesses and holiday let owners are expected to be impacted, according to the taxman’s estimates.
Several platforms such as Airbnb already report users’ income details to HMRC but Dawn Register of accountancy firm BDO said the upcoming change will make the sharing of data “automatic and global”.
She continued: “At the moment HMRC can demand data using its domestic powers. This is going to be broader in terms of geography.”
As part of the new regulations, HMRC is implementing new OECD rules that will give it even greater powers to investigate the tax affairs of people earning an income via a digital platform based overseas.
As of November 2022, 28 countries and jurisdictions had signed up to the OECD rules.