Making Tax Digital for Airbnb Hosts and Short-Term Let Owners

This page covers UK hosts letting whole properties or spare rooms through Airbnb, Vrbo, Booking.com, Plum Guide or direct-booking sites. It applies to individuals who own (or rent-to-rent) the property — not limited company hosts, who fall under Corporation Tax.

HMRC's MTD threshold is tested on gross property income. For Airbnb that is the full nightly rate plus cleaning and guest service fees, before Airbnb's host service fee is deducted. Multiple-property hosts add all properties together.

• Over £50,000 gross — from April 2026
• £30,000–£50,000 — from April 2027
• £20,000–£30,000 — from April 2028

• Gross booking value per stay (Airbnb / Vrbo / Booking.com / direct).
• Cleaning fees collected from guests (income).
• Airbnb host service fee, Vrbo / Booking.com commission.
• Cleaner and laundry costs.
• Utilities, council tax, broadband, TV licence (apportioned for personal use).
• Replacement furnishings, consumables (toilet roll, coffee, soap).
• Mortgage interest (claimed as a basic-rate tax reduction, not deduction).
• Letting agent or co-host fees, photography, listing tools.

The Furnished Holiday Lettings regime ended on 5 April 2025. From 6 April 2025 short-term lets are taxed as ordinary UK or overseas property income. Mortgage interest is now restricted to a basic-rate tax reduction, capital allowances on furniture have stopped for new expenditure, and FHL pension contributions no longer get special treatment.

Hosts in scope of MTD for Income Tax submit four quarterly updates of property income and expenses, plus a final declaration after the tax year. UK and overseas property are reported as separate income sources.

Quarterly updates explained →

Look for software that handles multiple properties, multi-currency (for overseas lets) and channel-manager imports. FreeAgent, Hammock and Untied are popular with hosts. Spreadsheet users can use MTD bridging software to keep their existing booking trackers.

Browse MTD software →