Last updated: 14 October 2026
Is HMRC targeting Airbnb landlords?
Yes. Since January 2024, digital platforms such as Airbnb, Booking.com and Vrbo have had to report hosts’ income to HMRC each year under the platform reporting rules. The first reports covered 2024 and went to HMRC by 31 January 2025. HMRC now uses this data to find hosts who haven’t declared rental income, and sends “nudge” letters asking them to check their tax returns.
What platforms report
| Information | Detail |
| Your name, address and date of birth | Or company details |
| Your tax reference or NI number | If held |
| Property addresses | For each listing |
| Gross income and fees | Per quarter |
| Number of nights booked | Per property |
Do you need to declare Airbnb income?
- Under £1,000 a year: the trading or property allowance means you don’t need to declare it
- Letting a room in your own home: rent-a-room relief makes up to £7,500 a year tax-free
- Whole properties: declare on your Self Assessment return, either as property income or as a furnished holiday let if you had one before April 2025
The furnished holiday lettings regime ended on 6 April 2025. Short lets are now taxed like other residential lets, with finance costs restricted to a 20% tax credit.
If you haven’t declared income
If HMRC writes to you, don’t ignore it. You can use the Let Property Campaign to tell HMRC about undeclared rental income for past years. Penalties are lower if you come forward before HMRC opens an enquiry. The time limits are:
- 4 years for genuine mistakes
- 6 years for carelessness
- 20 years for deliberate errors
Example
Sanjay has let his flat through Airbnb since 2021 and never declared the income of about £14,000 a year. In 2026 he receives an HMRC letter. He makes a voluntary disclosure through the Let Property Campaign for 5 years, pays the tax, interest at 7.75% and a reduced penalty, and starts filing returns.
Expenses you can claim
- Cleaning, laundry and changeovers
- Platform fees
- Utility bills and broadband
- Replacement of furniture and appliances
- Insurance and repairs
- Mortgage interest, as a 20% tax credit
Other points
- Council tax or business rates: short lets available for 140+ days and let for 70+ days in England may pay business rates
- VAT: if your letting income goes over £90,000, holiday lets are standard-rated
- Planning: some areas, including London, limit short lets to 90 nights a year
Mixed use of the property
If you use the property yourself for part of the year, split costs between private and letting use. Only the share relating to letting days is deductible. For example, if you use a holiday home for 4 weeks and let it for 30 weeks, you can claim most running costs, but not those relating to your own stays.
Frequently asked questions
Will HMRC know about cash bookings?
No, but you must declare them.
Do I pay tax on the gross Airbnb payment?
Platform fees can be deducted.
Does Making Tax Digital apply?
Yes, if your total qualifying income is over £50,000 from April 2026.
Can a company let my property?
Yes, but it has its own tax rules.
Related: renting a room in your house, paying UK tax on rentals abroad and jointly owned rental income.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with Airbnb and short-let tax. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
