Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.


Renting out property on Airbnb or selling second-hand goods on sites like eBay and Gumtree could land people in hot water with the taxman, unless they check whether they need to register for Self Assessment (the deadline to register was 5th October) – according to one of the UK’s leading online accounting software providers.

FreeAgent – who provide innovative cloud accounting software to freelancers and micro-businesses – warns that many people across the UK could be risking being fined by HMRC due to not realising they should be paying income tax on money they earn “on the side”.

Now that the deadline for registering for Self Assessment has passed, FreeAgent is urging anyone who rents property on websites like Airbnb or regularly sells items in online second-hand marketplaces to check whether they meet HMRC’s “badges of trade” and, therefore, need to pay tax on this income. It is now estimated that the average Airbnb host makes at least £3,000 per year, with 50,000 people currently hosting in the UK.

If these individuals meet HMRC’s “badges of trade”, they will need to register for Self Assessment as soon as possible, and then file their tax return before the January 31st 2017 deadline for submissions – or else receive a £100 fine from HMRC, and risk further penalties for not paying the tax they owe. During the last Self Assessment season, 840,000 people (14% of taxpayers) failed to submit their tax return before the January 31st 2017 deadline; leading to automatic £100 fines from HMRC.

Ed Molyneux, CEO and co-founder of FreeAgent, said: “Self Assessment can be an incredibly stressful time for small business owners, so it’s important to get on top of your tax early. That means registering with HMRC, calculating how much tax you need to pay and then filing your tax return in plenty of time to avoid incurring penalties.

“However, it’s important to remember that it’s not just people who run their own established business who need to submit a tax return. With the rise of the sharing economy and the increase in the number people making regular sales on sites like eBay and Gumtree – as well as renting out property on Airbnb – many people are making money outwith their usual work. Therefore, HMRC looks at a range of factors to determine whether a person is ‘trading’ or not and whether they need to pay tax on that income.”

“Many people in the UK may be currently unaware that they actually have to file a Self Assessment tax return, so it’s vital that everyone checks whether the money they make is taxable income or not. By reviewing any ‘on the side’ cash you accumulate against HMRC’s badges of trade, you’ll be able to tell whether you need to register for Self Assessment and file a tax return – and avoid any nasty surprises from the taxman in the future.”