Last month, Revenue sent letters to approximately 12,000 people, reminding them to include income from Airbnb lettings in their tax returns on foot of information it received from Airbnb relating to 2014, 2015 and 2016. If the individuals in question have not correctly dealt with tax due on the income from Airbnb lettings, then they may be entitled to make a qualifying disclosure to maximise penalty mitigation, and to avoid publication and prosecution.

In the letter, Revenue re-states their position that the income arising from Airbnb type lettings is not generally treated as rental income under Schedule D, Case V and does not qualify for rent-a-room relief. Instead, the income is treated as either Case I trading income or Case IV miscellaneous income depending on the frequency and regularity of Airbnb transactions.