London Daily

Focus on the big picture.
Saturday, Jul 04, 2026

Airbnb probed by UK tax authorities

Airbnb probed by UK tax authorities

Home rentals site Airbnb has warned a tax inquiry by HM Revenue & Customs could lead to legal proceedings.

A note in newly filed accounts for Airbnb UK said it had been contacted by HMRC over "tax laws or regulations impacting the company's business".

"The company is also subject to tax inquiries and proceedings concerning its operations and intra-company transactions," it added.

"Some of these matters may result in litigation."

The San Francisco-based company has two UK entities - Airbnb UK, which markets and supports the business, and Airbnb Payments UK, which processes payments between Airbnb hosts and guests outside the US, China and India.

Last year, Airbnb UK paid tax of £146,059 on profits of £455,076 and a £14.2m turnover.

The payments arm had a turnover of $353.7m (£273.2m), but it only made a $1.5m profit and paid tax of $303,823.

In a statement, the company said: "We follow the rules and pay all the tax we owe in the places we do business. That is true as rules apply today and will remain true for whatever rules apply in future.

"The Airbnb model is unique and boosted the UK economy by £4.2bn last year alone. The vast majority of money generated on our platform stays with hosts and local communities, which makes Airbnb fundamentally different to companies that take large sums of money out of the places they do business.

"As with many other companies, these are routine checks and we are working closely with HMRC."

Airbnb plans to float next year in what is expected to be one of the highest-profile share sales of 2020. In September, it said second-quarter global revenue reached $1bn, but did not say whether it made a profit.

George Bull, senior tax partner at accountancy firm RSM, said: "Nobody is saying that Airbnb has done anything wrong. The law is complicated, they have to decide how they are going to file their tax returns, they may do it on a basis that HMRC doesn't like.

"However, the phrase 'This may result in litigation' sounds quite serious. It sounds as though Airbnb is expecting a big tussle with HMRC to get these figures across the line."

He added: "The UK company has a turnover of £14m and it pays tax of around £200,000, so people are saying, 'How can this be? Why are the figures so out of kilter?'

"The answer goes back to the 1920s. These basic tax rules for these companies are decades old and they really haven't kept up with the growth of the digital platforms."

Both eBay and PayPal paid extra tax in 2017 following a HMRC review. In recent months, Amazon and Facebook have come in for criticism over the size of their UK tax bills.

Earlier this month, the Organisation for Economic Co-operation and Development (OECD) proposed tax changes aimed at making global firms pay more tax.

The proposals would give governments more power specifically to tax big technology firms such as Apple, Facebook and Google.

Newsletter

Related Articles

0:00
0:00
Close
UK Government Consults International Partners on Maritime Trade Security and Energy Market Stability
Rare Revolutionary-Era Documents Discovered by UK Archives and Undergoing Authentication
UK Consumer Confidence Remains Deep in Negative Territory as Household Spending Stays Cautious
Transport for London Warns of Severe Disruption as Major Events Converge in Central London
NHS and Social Care Sectors Face Ongoing Recruitment Shortages Amid Persistent Workforce Gaps
Rising Energy Costs Drive Price Pressures Across UK Retail and Service Sectors
Competition and Markets Authority Expands Review of Artificial Intelligence Impact on UK Media Markets
UK Parliamentary Committees Intensify Scrutiny of National Security and Industrial Policy Legislation
Bank of England Faces Persistent Inflation Pressure as Rate Cut Expectations Fade
UK Public Finances Under Pressure as Borrowing Exceeds Forecast and Debt Nears 95% of GDP
Major Police Deployment Across Central London as Mass Demonstrations and Pride Parade Converge
Large-Scale Police Dispersal Powers Activated in Liverpool Ahead of Anti-Immigration Protests and Counter-Demonstrations
Luxury bags take over the World Cup: style, status symbol, or just showing off?
National Productivity Institute Highlights Weak Business Investment Outside Southern England
UK High Court Orders Reassessment of Environmental Impact in Major Highway Project
UK Cyber Security Centre Warns of Rising Threat From State-Sponsored Digital Espionage
UK Education Secretary Launches National Reform of Apprenticeships and Vocational Training
Financial Conduct Authority Tightens Climate Risk Disclosure Requirements for Listed Firms
Rail Union Suspends Planned Strike Action to Enter Formal Negotiations With Operators
Northern Ireland Businesses Seek Clarity Over Post-Brexit Trade Rules
Welsh Government Launches Regional Growth Plan Targeting Transport and Digital Infrastructure
North Sea Wind Sector Attracts £5 Billion Investment Amid Expansion of Offshore Capacity
Scotland and UK Governments Establish New Framework for Coordinated Investment in Energy and Infrastructure
UK Government Launches Major Immigration and Border Policy Overhaul Review
Bank of England Signals Interest Rates to Remain Elevated Despite Easing Inflation Pressures
National Health Service Warns of Severe Winter Capacity Strain Across Hospital Trusts
Chancellor Orders Urgent Treasury Review Amid Concerns Over Structural Public Finance Gap
Prime Minister Unveils Sweeping Legislative Programme Focused on Housing, Health Service Reform and State Energy Plan
UK Parliamentary Committee Launches Inquiry Into Falling Primary School Rolls and Public Service Impact
UK House of Lords Debates Electoral Commission Powers and Political Finance Reform
UK Parliament Considers Expanding Carbon Rules to International Aviation and Shipping Emissions
UK Traffic Commissioner Revokes Hampshire Haulage Operator Licence Over Regulatory Failures
UK Parliament Examines Risks in Public Contracts Awarded to Technology Firm Palantir
UK Competition Watchdog Moves Toward More Flexible Merger Rules to Support Efficiency and Growth
UK Government Seeks Approval for £1.15 Trillion Public Spending Plan Amid Scrutiny Over Department Budgets
UK Parliament Debates Sweeping National Security and Steel Industry Nationalisation Bills
UK Government Issues Formal Apology for Historic Forced Adoption Practices and Announces £4 Million Support Scheme
UK DEFENCE AND TECHNOLOGY STRATEGY TILTS TOWARD SOVEREIGN CAPABILITY AND INDUSTRIAL INVESTMENT
UK ECONOMIC POLICY OUTLOOK SHAPED BY LEADERSHIP TRANSITION AND FISCAL SIGNALS
STERLING STRENGTHENS AMID SHIFTING MONETARY OUTLOOK AND GLOBAL LABOUR MARKET SIGNALS
UK HPV VACCINATION PROGRAM NEARLY ELIMINATES CERVICAL CANCER DEATH RISK IN YOUNG WOMEN
UK EXPANDS PRISON SAFETY REVIEW AS GOVERNMENT SEEKS WIDER SYSTEM REFORM
UK DRIVES DIGITAL ASSETS STRATEGY WITH NEW STABLECOIN REGULATORY MODEL
UK TO EXPAND AI INFRASTRUCTURE THROUGH NEW EUROPEAN TECHNOLOGY PARTNERSHIP
UK LAUNCHES £15 BILLION DEFENCE TECH SHIFT TOWARD ADVANCED MILITARY SYSTEMS
CIVIL SERVICE FACES SHIFT IN POWER STRUCTURE AS REGIONAL GOVERNANCE PLANS EXPAND
WHITEHALL CONSIDERS MAJOR DECENTRALISATION PLAN WITH SECOND GOVERNMENT HUB IN MANCHESTER
UK TARGETS SERVICES EXPORT GROWTH IN TRADE TALKS WITH CHINA AMID GEOPOLITICAL TENSIONS
POLICE WATCHDOG PROBES OFFICERS OVER HANDCUFFING OF DYING TEENAGER IN HAMPSHIRE CASE
UK REGULATORS UNVEIL DUAL OVERSIGHT FRAMEWORK FOR STABLECOINS AND DIGITAL ASSETS
×