Does MTD apply to Airbnb and short-let hosts?

Host on Airbnb, Booking.com or Vrbo? HMRC treats short-let income as property income, the same category as a long-term let, so Making Tax Digital (MTD) for Income Tax covers it the same way it covers any landlord, under the property pages of your tax return (SA105).

What did the end of Furnished Holiday Lettings change?

Furnished Holiday Lettings (FHL) used to carry its own tax perks: fuller mortgage interest relief, capital allowances on furnishings, certain reliefs on sale. That special regime was abolished from 6 April 2025, and short-let income is now taxed under the same rules as any other rental. For MTD, this was never a separate question: short-let income has always sat in the same property-income total as any other let. If you had FHL claims in place before the change, that transition is one for your accountant.

When does MTD apply to short-let hosts?

• From April 2026: gross income over £50,000
• From April 2027: gross income over £30,000
• From April 2028: gross income over £20,000

Those dates come from HMRC’s guidance on who needs to use MTD for Income Tax (opens in a new tab). The threshold is gross income: combine property income with any self-employment. And “gross” usually means the full booking value before the platform’s service fee and payment processing charges come off, not just the payout you receive. Those fees are typically a business expense rather than a reduction of income. Check your host statement for the gross figure if you’re unsure.

Is each platform a separate property business?

List the same property on Airbnb and Booking.com, or take direct bookings too? That’s normally still one property business for MTD purposes: the income from all of them is added together. A place abroad is the exception: HMRC treats UK property and overseas property as two separate businesses, reported separately. Jointly-owned properties, a mix of long and short lets, or several properties can also change how it’s reported, so where your set-up is anything other than straightforward, check with your accountant or HMRC.

What to do now

• Confirm your date with the two-minute checker.
• Keep digital records of booking-platform statements, cleaning and linen costs, and any host fees.
• Put your quarterly deadlines in your calendar from the deadlines page.

See how QuarterFile handles multi-platform booking income, on the short-let hosts page.