Due to the increase in staycations, it is anticipated that HMRC will look at self-assessment returns declaring Furnished Holiday Lettings income to see that income reflects the recent boom in UK holidays and the substantial increases in the cost of these holidays.

If you use a letting agent in the UK, they are likely to report increased income from their business and HMRC will expect to see this reflected in individual self-assessment tax returns. If you market your property with AirBNB, they have agreed to share information on income earned by UK hosts to the tax authorities as part of a settlement with HMRC.

HMRC have for a number of years believed that FHL income is underreported. If you have received increased income from this business, it is strongly recommended to report the true earnings as it is anticipated that HMRC are going to look more closely at returns containing FHL income.