Airbnb pays additional £1.8m UK tax
30 Sep 2020
Airbnb UK paid an additional £1.8m in tax last year, following an HMRC investigation into the company’s UK tax arrangements
30 Sep 2020
The move comes after the UK arm of the online home rental company noted in its 2018 accounts that: ‘The HMRC have contacted the company regarding the application of tax laws or regulations impacting the company’s business.
‘The company is also subject to tax inquiries and processing concerning its operations and intracompany transactions’.
The latest accounts filed this year state: ‘During 2019, the company received a revised assessment from HMRC which resulted in additional tax payable of £1.8m’, according to a report in Reuters which has reviewed the documents.
These show that, aside from the additional corporate tax bill, Airbnb UK paid £1.1m in tax on its profits in the year to 31 December 2019, compared to £146,000 in 2018. Profits were up significantly at £5.6m compared to £455,000 previously.
The company also said that it would share earnings data from its UK hosts with local tax authorities going back to 2017. There are believed to be around 225,000 hosts active in the UK.
In a statement, the company said: ‘The Airbnb model boosted the UK economy by more than £5bn in direct economic impact last year alone, providing hosts the opportunity to earn extra income and communities a way to get their economies running again.
‘The overwhelming amount of money generated by the Airbnb platform stays within UK communities, with hosts keeping up to 97% of what they charge.
‘We are committed to working in partnership with governments… and we will continue to work collaboratively with HMRC.’