Running an Airbnb or short-let in the UK can be a great source of extra income but it also comes with tax obligations. Whether you let a spare room or manage multiple holiday rentals, HMRC expects you to declare your earnings and pay the correct tax.
At Taxwise Accountancy, we're online accountants for Airbnb and short-let hosts across the UK. We help you understand your tax position, claim the right reliefs, and stay compliant — all while making the process simple, efficient, and stress-free.
Platforms such as Airbnb, Booking.com, and Vrbo are now required to share host income data with HMRC.
In summary:
If you earn money through Airbnb, HMRC will know. Keeping accurate records and filing correctly is now essential.
Navigate the complex tax landscape for Airbnb and short-let properties with expert guidance.
If you let a furnished room in your main home, you can earn up to £7,500 per year tax-free (£3,750 if jointly owned). Above this limit, you must file a Self Assessment tax return.
If you rent out a separate property (or your whole home occasionally), you can earn up to £1,000 in gross income tax-free. Once you exceed £1,000, you must register for Self Assessment and pay tax on profits.
If your short-let meets the FHL rules (availability, letting, and pattern of occupation tests), you may currently benefit from extra tax advantages — including capital allowances and CGT reliefs.
FHL regime will be abolished from 6 April 2025
Stay compliant with HMRC and avoid penalties by understanding your tax responsibilities.
If your Airbnb income exceeds the Rent-a-Room or property allowance, you must register for Self Assessment and file your tax return.
Maintain records of:
You can claim a wide range of expenses against your Airbnb income, such as:
Important: If you use the £1,000 property allowance, you cannot claim further expenses — we'll help you choose the most tax-efficient option.
HMRC can demand unpaid tax, charge interest, and impose penalties for undeclared income.
If you've missed previous years, you can disclose voluntarily through the Let Property Campaign — often resulting in lower penalties.
We can handle this process:
Beyond income tax, there are other important tax and regulatory matters to consider.
May apply when you sell your rental or Airbnb property. We'll help you understand reliefs and plan ahead.
If your total turnover from short-lets exceeds £90,000, VAT registration may be required.
Some frequently-let properties may fall under business rates instead of council tax.
From April 2025, FHL reliefs are ending.
Plan now to avoid surprises.
We're nationwide online accountants specialising in Airbnb and short-let property tax. Whether you host a single room or manage a property portfolio, we'll keep you compliant and tax-efficient.
Our experienced team assists you in the process of registering for Self-Assessment and provides step-by-step guidance on submitting returns accurately and on time.
Our dedicated experts meticulously identify allowable expenses and reliefs to maximize your tax savings and optimize your financial outcomes.
Receive expert guidance on effectively managing transitions related to Furnished Holiday Lettings to ensure a smooth and compliant process.
Let us handle all HMRC disclosures and enquiries on your behalf, guaranteeing precision, compliance, and peace of mind throughout the process.
Our team provides tailored advice on tax planning strategies, efficient record-keeping practices, and effective bookkeeping systems to enhance your financial management.
Benefit from our expert advice on implementing and maintaining robust record-keeping and bookkeeping systems to streamline your financial processes and ensure accuracy.
Common questions from Airbnb and short-let hosts about tax obligations.
At Taxwise Accountancy, we work online with Airbnb and short-let hosts nationwide.
We'll help you register, stay compliant, and reduce your tax bill — so you can focus on hosting with confidence.
Or call us: 01582 487594