Wednesday 17 January 2018

Terry Clune's Taxback inks partnership with Airbnb

Entrepreneur Terry Clune founded Taxback
Entrepreneur Terry Clune founded Taxback

Sarah McCabe and Gavin McLoughlin

Tax refunder Taxback has signed a deal with Airbnb that will make the Irish company the "preferred tax partner" for Irish Airbnb hosts.

The agreement comes on the back of confusion as to whether Airbnb hosts were liable to pay tax on income earned from the site, with Revenue determining that the income did not qualify for rent-a-room tax relief.

Taxback senior tax manager Barry Flanagan said the deal was "a natural progression" after the confusion arose last year.

"In response to this we streamlined our process to make it as easy as possible for people to fulfil their tax duties, but we also coupled this with an opportunity for people to find out whether, conversely, they were owed something from Revenue - our average PAYE refund for someone with no prior claims comes in at approximately €880 and so some hosts may actually be able to offset any tax due with the amount they receive in refunds," he said.

"There are currently over 11,000 Airbnb listings in Ireland which means that all of these people now have to report this income to Revenue - even if they are PAYE workers. Many of these people are not accustomed to having to file a tax return and don't know where to start. The tax liabilities can range from just a few euro to possibly significant sums - depending on the value of the rental and how often it's let, etc."

The partnership will see Airbnb refer every host that signs up to Taxback, where hosts will get a discount of around 10pc on the standard filing fees for one employment income/ P60 return and one host rental income return.

Taxback was founded by well-known entrepreneur Terry Clune. Another company in Clune's empire, Transfermate, is planning to double its workforce over the next three years, the Sunday Independent has learned. The foreign exchange business intends to add around 50 people a year, doubling its workforce to 330 by 2019.

Transfermate has built up a global network of payments licences around the world which cuts out the need for intermediary parties. It says this significantly cuts the cost of international payments for businesses and has processed about $5.5bn (€4.9bn) on behalf of clients worldwide. It contends that banks are only able to operate "one leg of the journey", forced to work with partner banks which results in unnecessary fees, wider foreign exchange margins and delayed payments.

Co-founder Barry Dowling said the company is targeting $20bn a year in payments as its next major milestone alongside the recruitment drive.

Sunday Indo Business

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