Wimbledon residents who don’t file a tax return when required could face painful penalties from HMRC – London Business News | Londonlovesbusiness.com

Wimbledon residents looking to make extra money off tournament goers could face painful penalties from HMRC if they don’t file a tax return when required, say leading audit, tax and business advisory firm, Blick Rothenberg.

Tom Goddard, a Senior Associate at the firm, said, “Wimbledon is one of the most prominent sporting events of the year and attracts thousands of people.

“Residents in the area looking for extra income might let out spare rooms and driveways during the tournament, or sell strawberries and cream. But any money generated from these activities, even on a short-term basis, may be subject to tax and must be reported to the Revenue. If not, HMRC has costly penalties and interest at their disposal for tax evaders.

“For those hoping to fly under the radar, increased income brings increased scrutiny from HMRC. Through the freedom of information agreement, the Revenue have access to over 30 different databases which allow them to monitor short-term letting platforms, property listings and bank statements.”

Tom added, “There are however, several tax reliefs that Wimbledon residents could claim.

“Property Income Allowance (£1,000): This allowance can be used against rental income in place of deducting actual expenses. This is particularly helpful for occasional or small-scale letting arrangements, such as renting out a driveway.

“Trading Allowance (£1,000): If you’re selling goods, such as strawberries and cream, the trading allowance allows for the first £1,000 of income to be tax-free. This is separate from the property income allowance.

“Rent-a-Room Relief (£7,500): Homeowners who rent furnished accommodation in their main residence can receive up to £7,500 tax-free per year, provided you also reside in the property for some period during this time. If, however, the property is jointly owned, the allowance is halved to £3,750.

“Regardless of whether one of the above reliefs apply, Wimbledon residents renting rooms or selling goods may still have tax reporting obligations.

“The deadline for self-assessment tax returns for income earned at Wimbledon this year is 31^st January 2027.”