After an investigation into Airbnb UK’s tax arrangements, led by HM Revenue & Customs (HMRC), the company paid an additional £1.8 million in tax in 2019.
In 2018, “HMRC contacted the company regarding the application of tax laws or regulations impacting the company’s business.”
It was stated that “the company is also subject to tax inquiries and processing concerning its operations and intracompany transactions.”
According to a report that reviewed this year’s documents, “during 2019, the company received a revised assessment from HMRC. Which resulted in additional tax payable of £1.8 million.”
The report reveals that Airbnb UK paid £1.1 million in tax profits during 2019, not including the additional corporate tax bill. In 2018, they paid £146,000. The reason for this was that their profits increased significantly, from £455,000 to £5.6 million.
It is estimated that the UK portion of the company has 225,000 hosts, and Airbnb agreed to share their earnings data from the UK hosts with the local tax authorities, dating back to 2017.
They state, “The Airbnb model boosted the UK economy by more than £5bn indirect economic impact last year alone, providing hosts with 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 per cent of what they charge.
“We are committed to working in partnership with Governments… and we will continue to work collaboratively with HMRC.”