AirBnB withholding taxes for a country that isn’t relevant?

[Lucy222]

Hi all, hoping you can help! AirBnB have repeatedly asked me to confirm my tax status recently, and every time I have selected ‘other’ in the country options as I’m in the UK. 

But despite this, they have started withholding US taxes. I have no idea why they suddenly think (after a decade of hosting) that I should be paying tax in the US.

I am a UK citizen, the listing is in the UK, payouts are to a UK bank account, my address on my account (the same one that hasn’t changed since I started hosting many years ago) is in the UK, etc. I have given them tons of evidence of my UK residency including bank statements, pet insurance, recent car MOT bill, last year’s tax overview from HMRC showing that I paid tax on the property income in the UK (and income from my job in the UK), utility bills, etc. They are ignoring all of it and saying they won’t resume my payouts unless I complete US tax forms. I’ve asked to escalate it but keep being told there is nobody more senior that can deal with it which seems crazy. All I need is somebody with a bit of common sense to look at the evidence I’ve given and mark my tax obligations on my account as UK only. 

Help! What can I do? This has been going on for weeks now and I’m getting to the point where I am just going to close my account and go with VRBO instead, leaving lots of people with bookings in the months ahead suddenly finding their bookings cancelled, but I really don’t think it’s fair to do that to the guests. 

Has anybody ever taken AirBnB to the small claims court? That seems to be my only other option. 

[Mike-And-Jane0]

@Lucy222 there is a relevant US tax form to fill in. From memory it is something like W8-WEN (or BEN? this might be hopelessly wrong).

Small claims court will win as Airbnb won't show up but I would look for this form first as it should stop Airbnb withholding tax.

One quick question though - You say you are a UK citizen but are you also a US citizen?

[Lucy222]

Thanks @Mike-And-Jane0. No, just a UK citizen and have lived in the UK my whole life. 

I’m struggling to understand why on earth I should have to fill in a form for a foreign country - and AirBnB have said I need to get a tax advisor to help me work out which form I need to fill in, which of course I’d have to pay for. I’ve given them tons of evidence I’m UK resident but they’re refusing to look at it. 

It’s also concerning me that they can suddenly decide to do this. What if they decide I need to have Australian/Japanese/Mongolian taxes withheld for no reason as well?!? 

If they won’t listen to reason or look at the evidence I’ve given them then I might just have to walk away but I would hate doing that to the guests that have booked.

[Mike-And-Jane0]

@Lucy222 its your choice but W8BEN will sort out the issues you have. Airbnb is an American company so has to comply with their laws wether you like it or not.

[Lucy222]

But US’s tax laws are nothing to do with me in the UK. I am complying with their laws, as I pay my taxes in the country where they’re due.

I appreciate the advice, but that’s not what AirBnB are saying to me. They’re saying I need US tax advice, which I’d have to pay for. For a country I have nothing to do with!

It doesn’t help me get the money they’ve withheld either, they say I’ll get it back when I file my taxes next year - and obviously I don’t file US taxes! If it was just a simple form I’d do it, but that’s not what they’re telling me, they’re saying that won’t be enough. 

It’s just ridiculous that they’re asking this, and goodness only knows what other countries they’ll chuck at me in the future. It makes me very wary of using them again.