Giving your UK tax ID to an American company - An identity fraud risk?

[Angie-And-Bob0]

In the UK the NI (personal tax) number, is one piece of personal data that can easily be used as a weapon for identity fraud (someone takes your private details to impersonate you, creating bank accounts, getting loans/mortgages etc, and YOU pay the bills the fraudster racks up). This happens increasingly often, for example, there are very currently many phishing emails/postal letters/texts/phone calls, in the UK, all pretending to be from HMRC. The advice to consumers is, "If something REALLY is from HMRC, they'll quote your NI number in their communication."

Airbnb have recently asked all UK hosts to supply their NI number to the company. This isn't a safe idea!  No one except the British tax authority (and a select few other British institutions, such as public health services), should have this number, if you want to reduce your risk of ID fraud and keep your personal data safe, don’t give out this number. Alarm bells ring at the thought of giving it to a private American company, who then send it to a tax office in Ireland, after which Ireland transfer it to the UK.  That's 2 transfer opportunities for hackers to steal it as it moves from system to system around the world.  The UK tax authorities can identify Airbnb hosts from the name address and other info Airbnb already hold and already give to HMRC, they can do this without compromising our privacy and security.

Storing and passing round sensitive data outside of the UK tax authorities, I believe to be an infringement of our right to privacy and security.  The irony is, we make a couple of thousand a year after expenses under the rent-a-room scheme, so  wouldn't pay tax anyway.   I'm loath to risk my personal security when no one will raise any tax benefits from it!

I will pay any tax I'm due, but won't compromise my security.  I've delisted and will use the space for my family in future. 

[Marie8425]

@Angie-And-Bob0 

I would ask why did Airbnb request the information?  In the U.S. they request my SSI number our U.S. tax identifier.  They request this because the U.S. government tax agency requires they inform the government about rental income Airbnb pays the Host.  Yes, there is a risk of fraud.  So in the U.S. businesses that collect and store any identity information are subject to very detailed requirements concerning collection and storage,

[Helen3]

It's a new legal requirement our government introduced under our digital distance selling regulations @Marie8425 

[Helen427]

@Angie-And-Bob0, may we suggest you have a browse through Justica Patents related to ABB Systems, including this one which may explain in part why we have received similar such email or pop up Notifications.

One may reasonably surmise that they have plucked out all of those who have a 'Room' in our homes/ property, and dumped us all into the same category despite the fact that it is a legal requirement to do Due Diligence and Individual Risk Assessments and request various Information only if required.

It appears they have sent out a splatter paintball email out to all and sundry, and taken a one size fits all King size Blanket approach.

This is from New Zealand, as an example, and our IRD (Tax office) have exemptions for those who do not need to register for GST, - the equivalent of VAT in the UK.

Airbnb would improve there approach by providing Options also to Opt in / Opt out or Not applicable or similar and undertaking better Due Diligence with there Processing systems.

https://www.dia.govt.nz/AML-CFT-Frequently-Asked-Questions-for-DIA-Reporting-Entities

https://patents.justia.com/patent/11775601

User electronic message system

May 25, 2022 - Airbnb, Inc.

Network site users can be selected to receive a communication based on a network site event, such as incomplete registration. A hybrid user interaction machine learning scheme can select a portion of the selected users based on user interaction estimates and network sampling data. The electronic document sent to the users can have portions that undergo two-pass ranking for ordering of content items to be included in the electronic document, such as an email.

[Mike-And-Jane0]

@Helen427 Strangely the UK government doesn't allow people or companies to opt in or out of the law. All have to comply with it or face significant legal and financial penalties.

[Rebecca · Accepted solution]

Hi @Angie-And-Bob0 ,

Thank you for sharing your concerns here in the Community Center and sorry you're not feeling comfortable with what we are asking you to provide in your capacity as Host. You can read more about ID verifications for Hosts here on the Help Center - I hope that it provides some clarification and allays your fears. 

Thanks

[Helen3]

Hello @Angie-And-Bob0 

New distance selling regulations were introduced recently which require companies like Airbnb, EBay, Amazon to collect a UTR or NI number from business owners in the UK .

this is a legal requirement they have to meet .  

your advice is unfortunately incorrect Airbnb don't provide the name and addresses of hosts in the UK to the HMRC the information required under the new legislation is for a UTR or NI number. 

if you meet the terms of a rent a room scheme you won't be .taxed unless your income exceeds 7500.

as you know we do need to provide our NI for other financial issues such as mortgage applications.

[Mike-And-Jane0]

@Angie-And-Bob0**

1) In the UK/EU we probably have some of the best consumer protection in the world. IF you have a case of identity theft then the banks will not charge you for the fraudsters stolen money etc

2) You need to use your NI number in the UK to open bank accounts these days 

3) Airbnb along with other internet platforms are required to furnish your earnings to HMRC. How on earth do you expect them to do so without your unique NI number to identify you?

4) Your understanding of the rent a room scheme is flawed and in contravention of HMRCs rules. If you use the £7500 exemption then you cannot deduct business expenses (as per your penultimate paragraph). 

Number 4 above is a classic example of why hosts should supply their NI number to Airbnb so it can report your earnings. By doing so HMRC can then charge you the correct amount of tax and  everyone else's taxes will no longer be subsidising your tax evasion.

It sounds like you are pulling the plug on renting out a room but do be aware that HMRC can come after you for a number of years (7 from memory). It is always better to declare tax evasion than have HMRC find it as the fines are considerably lower for those who self report.

**[Content removed in line with the Community Center Guidelines]

[Helen427]

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

How it works

The tax exemption is automatic if you earn less than £7,500. This means you do not need to do anything.

If you earn more than this you must complete a tax return.

You can then opt into the scheme and claim your tax-free allowance. You do this on your tax return.

You can choose not to opt into the scheme and instead record your income and expenses on the property pages of your tax return.

More information

Read the Rent a Room helpsheet for more detailed information on how to complete the form, and when it makes sense to opt out of the scheme.

Eligibility

You can opt in to the scheme at any time if:

• you’re a resident landlord, whether or not you own your home
• you run a bed and breakfast or a guest house

You cannot use the scheme for homes converted into separate flats.

@Angie-And-Bob0@Rebecca @Marie8425 

[Mike-And-Jane0]

@Helen427 Thank you but I do know the rules of the rent a room scheme. Many however do not (as suggested by @Angie-And-Bob0 's 4th paragraph and it is far more complex as to what properties are allowed and which are not.

[Angie-And-Bob0]

You are correct Helen. Earning less than 7500 you don't need to file anything if it's rent-a-room, (though this must be the gross including your expenses). 

[Angie-And-Bob0]

You are wrong (or perhaps naive) on many levels.

1 If you've ever listened to consumer programmes in the UK (Shari Vahl - 'You and Yours' consumer program BBC Radio 4), you'll know people have lost their homes this way and in some cases never got them back.
2 I've never needed an NI to open a bank account in my life (except ISAs). Though giving one to a UK bank is different from giving it to a private US corporation.
3  Airbnb have presumably already been giving all our info (name, address, earnings), to HMRC, without this number.
4  If you earn under the rent a room limit (as we do), you get to CHOOSE if you want to report and claim expenses, or not. That's the whole point of it!  Please read the HMRC site (as we did before we started).   We chose not to report, as we have only done in the summer so don't have any heating  expenses and we are always well below the limit, due to our short season and price. If we did Airbnb all year, as a business, (as presumably  you do), we'd need to report it and we would get to claim expenses.  Not everyone chooses to run a business and the law says we don't have to.  We comply fully with the law!

I'm sorry you see things so black and white. Life is not that way!  I've seen what happens when people give away their private data unnecessarily. We will have to agree to differ. Good luck to you. I hope you never suffer from identity  theft!

IMPORTANT:
Furthermore.  You have accused me of tax evasion!   This is a very serious and most untrue and unfounded accusation. As I explained I earn below the limit, and am using a legitimate scheme. Your comment is therefore libelous and therefore against the law.  Please amend or remove the paragraph containing your libelous comment straight away, or I will be forced to report this to the platform.

[Helen3]

Hi @Angie-And-Bob0 

Just one point to clarify from your response to @Mike-And-Jane0 

Whether you operate all year around or just for a few months and whether you use the rent a room scheme or submit a tax return to cover your earnings you are running a business .

you provide a service which people pay for and you earn an income from - that's a business . 

as I mentioned in my first response to you previously no Airbnb did not provide our full contact details to HMRC . Even if they did that's irrelevant - the new digital distance selling regs require your NI or UTR number .

[Helen427]

It is misleading to state a person who shares a home with a Guest is a business.

It pays to do background research first and foremost prior to jumping to conclusions about anyone else's Private lives of which none of us have ever walked in anothers shoes, nor within the walls we live within.

The problem we are all facing is ABB have done a mail out for all rooms ..

https://www.airbnb.co.uk/help/article/5

[Helen3]

No its absolutely not misleading to say that someone who's is offering a paid for accommodation service in their home is running a business . @Helen427 

a business is defined  as an individual or entity providing commercial, industrial or professional services. 

I made absolutely no comment about @Angie-And-Bob0  private lives so please don't jump to conclusions which have no basis in fact.