Airbnb & Short-Term Let Tax Returns

If you're letting out property on Airbnb or other short-term rental platforms, you need to report your rental income and pay tax on your profits—it's not optional, and HMRC requires it. Short-term rental income from Airbnb and other platforms must be reported on Self Assessment tax returns, with income taxed as property income at standard Income Tax rates (20%, 40%, or 45%) after allowable expenses (gov.uk property rental tax). Airbnb hosts can claim allowable expenses including mortgage interest (restricted to basic rate 20% for higher/additional rate taxpayers), repairs and maintenance, insurance, council tax, utilities, cleaning, management fees, and wear and tear or replacement of domestic items relief. The furnished holiday lettings (FHL) tax regime was abolished from 6 April 2025, meaning short-term rental properties are now treated as standard property businesses with restricted mortgage interest relief and no capital allowances or Business Asset Disposal Relief.

The problem is many Airbnb hosts don't realise they need to declare their income, or they struggle with understanding what expenses they can claim, working out how much tax they owe, registering for Self Assessment, keeping proper records, and understanding the tax changes following abolition of the FHL regime. That causes problems—missing Self Assessment registration and facing penalties, claiming the wrong expenses and triggering HMRC enquiries, underpaying tax and facing interest and penalties, and confusion about what's changed since the FHL regime was abolished.

We handle Airbnb and short-term let tax returns for property owners across Kent: Self Assessment registration (registering you for Self Assessment if rental income exceeds the property allowance or you have other reasons to file), rental income calculation (calculating your total rental income from Airbnb and other platforms, including platform fees and charges), allowable expense claims (identifying and claiming all allowable expenses including mortgage interest, repairs, insurance, utilities, cleaning, and management fees), property income tax calculation (calculating your property income tax liability after allowable expenses, ensuring correct Income Tax rates are applied), tax return preparation and submission (preparing and submitting your Self Assessment tax return including property pages, ensuring all Airbnb income is reported correctly), and record keeping support (helping you maintain proper records of rental income, expenses, and occupancy for HMRC compliance). Whether you're an Airbnb host in Medway with a single property, a property owner in Maidstone with multiple short-term lets, or a landlord in Canterbury transitioning from long-term to short-term rentals, we'll handle your Airbnb tax returns that work. No missed deadlines, no unexpected tax bills—just proper tax reporting that keeps you compliant.

What this helps you do (fast)

• Stay compliant with HMRC requirements — We'll help you register for Self Assessment if needed, report all rental income correctly, and claim allowable expenses properly. Staying compliant avoids penalties and HMRC enquiries.
• Claim all allowable expenses — We'll help you identify and claim all allowable expenses including mortgage interest (restricted), repairs, insurance, utilities, cleaning, and management fees. Claiming expenses reduces your tax bill.
• Understand tax changes after FHL abolition — We'll explain how the abolition of the furnished holiday lettings regime affects your tax position, including restricted mortgage interest relief and loss of capital allowances. Understanding changes helps you plan.
• Calculate your tax liability accurately — We'll calculate your property income tax liability after allowable expenses, ensuring correct Income Tax rates are applied. Accurate calculations prevent underpayment or overpayment.
• Keep proper records — We'll help you maintain proper records of rental income, expenses, and occupancy, making future tax returns easier and ensuring HMRC compliance. Proper records save time and stress.
• Avoid penalties and interest — We'll ensure your Self Assessment tax return is filed on time and tax is paid correctly, avoiding late filing penalties and late payment interest. Avoiding penalties saves you money.

How it works

Step-by-step process for Airbnb and short-term let tax returns:

1. Discovery call — We chat about your Airbnb setup: how many properties you're letting, how long you've been letting them, what rental income you've received, what expenses you've incurred (mortgage interest, repairs, insurance, utilities, cleaning, management fees), whether you're registered for Self Assessment, and what you want to achieve. Understanding your situation helps us determine what needs to be done.
2. Self Assessment registration check — We check if you need to register for Self Assessment:
   • Property allowance — If rental income is less than £1,000 per tax year, you may not need to register (property allowance applies).
   • Other reasons to register — If you have other income requiring Self Assessment (self-employment, high income, etc.), you'll need to register regardless.
   • Registration process — If needed, we help you register for Self Assessment online through HMRC, ensuring registration is completed correctly.
   Self Assessment registration ensures you're set up correctly.
3. Rental income calculation — We calculate your total rental income from Airbnb and other platforms:
   • Platform income — We identify all rental income received from Airbnb, Booking.com, Vrbo, and other short-term rental platforms.
   • Platform fees — We account for platform fees and charges, which reduce gross rental income.
   • Additional income — We include any additional charges to guests (cleaning fees, service fees, etc.) as rental income.
   • Occupancy records — We review your occupancy records to ensure all bookings are accounted for.
   Rental income calculation ensures all income is declared.
4. Allowable expense identification and calculation — We identify and calculate all allowable expenses:
   • Mortgage interest — We calculate mortgage interest paid, though relief is restricted to basic rate (20%) for higher/additional rate taxpayers.
   • Repairs and maintenance — We claim costs of repairs and maintenance (but not improvements or capital expenditure).
   • Insurance — We claim landlord insurance premiums and buildings insurance.
   • Council tax and utilities — We claim council tax, water, gas, electricity, and internet costs (if you pay them as the landlord).
   • Cleaning and management — We claim cleaning costs, property management fees, and letting agent fees.
   • Replacement of domestic items — We claim replacement of domestic items relief (replacing furniture, appliances, etc.) or wear and tear allowance where applicable.
   • Other expenses — We identify other allowable expenses (advertising, accountancy fees, professional fees, etc.).
   Allowable expense identification reduces your taxable profit.
5. Property income tax calculation — We calculate your property income tax liability:
   • Net profit calculation — We calculate net profit (rental income minus allowable expenses).
   • Income Tax rates — We apply correct Income Tax rates (20% basic rate, 40% higher rate, 45% additional rate) based on your total income.
   • Tax liability — We calculate your total property income tax liability for the tax year.
   • Payment deadline — We confirm payment deadline (31 January following end of tax year) and help you plan payment.
   Property income tax calculation ensures correct tax is paid.
6. Tax return preparation and submission — We prepare and submit your Self Assessment tax return:
   • Property pages completion — We complete property income pages (SA105) on your Self Assessment tax return, ensuring all rental income and expenses are reported correctly.
   • Additional information — If there are specific circumstances (multiple properties, FHL transition, etc.), we add explanatory notes in the additional information box.
   • Final review — We review your tax return to ensure accuracy and completeness before submission.
   • Online submission — We submit your tax return online to HMRC by the 31 January deadline.
   Tax return preparation and submission ensures compliant filing.
7. Record keeping support and ongoing advice — We help you maintain proper records:
   • Record keeping guidance — We provide guidance on keeping records of rental income, expenses, and occupancy for future tax returns.
   • Expense documentation — We advise on what receipts and invoices to keep, and how to organise them.
   • Ongoing support — We provide ongoing support for future tax returns and any HMRC queries.
   Record keeping support makes future tax returns easier.

We handle all aspects of Airbnb and short-term let tax returns, from initial registration to final submission. The key is declaring all income, claiming all allowable expenses, and understanding how the abolition of the FHL regime affects your tax position.

Costs & timelines

Pricing factors:

• Number of properties — Single property vs. multiple properties increases complexity and time required.
• Complexity of expenses — Simple expenses (basic repairs, insurance) vs. complex expenses (capital improvements, multiple expense categories) increases complexity.
• Rental income level — Higher rental income may require more detailed calculations and tax planning.
• First-time filing vs. ongoing client — First-time filers may require more initial setup and guidance.

Commonly reported ranges by local providers:

• Simple Airbnb tax return (single property, straightforward expenses): £200–£500 (includes Self Assessment registration if needed, income calculation, expense claims, tax return preparation and submission)
• Standard Airbnb tax return (multiple properties, moderate expenses): £350–£750 (includes detailed income and expense calculations, tax planning, tax return preparation and submission)
• Complex Airbnb tax return (multiple properties, complex expenses, FHL transition, tax planning): £600–£1,500+ (includes comprehensive tax planning, complex expense calculations, tax return preparation and submission)
• Ongoing support (annual): £300–£600 per year (annual tax return preparation and submission, ongoing record keeping support)

Why Airbnb and short-term let tax returns cost what they do:

• Specialist knowledge — Understanding property income tax rules, allowable expenses, FHL regime changes, and Self Assessment requirements requires specialist tax knowledge.
• Time and complexity — Calculating rental income from multiple platforms, identifying and claiming all allowable expenses, and preparing tax returns correctly takes time and attention to detail.
• Compliance requirements — Ensuring accurate reporting and compliance with HMRC requirements protects you from penalties and enquiries.
• Record keeping support — Helping you maintain proper records saves time and stress for future tax returns.

Timeline: Self Assessment registration (if needed) typically takes 1–2 weeks. Tax return preparation typically takes 2–4 weeks from receiving all information, depending on complexity. Self Assessment tax returns must be filed online by 31 January following the end of the tax year. Tax payments are due by 31 January following the end of the tax year.

Payment: Typically invoiced on completion of tax return preparation, or in stages: registration (if needed), preparation (on completion), submission (on completion). Payment terms are typically 14–30 days.

No hidden fees. Our price includes Self Assessment registration (if needed), rental income calculation, allowable expense identification and calculation, property income tax calculation, tax return preparation and submission, and record keeping support.

Kent (UK) focus

For Airbnb hosts and short-term rental property owners in Kent, whether you're letting out a property in Medway on Airbnb, managing multiple short-term lets in Maidstone, or transitioning from long-term to short-term rentals in Canterbury, Airbnb and short-term let tax returns require careful attention to income reporting and expense claims. Many Kent property owners don't realise they need to declare Airbnb income, or they struggle with understanding what expenses they can claim and how tax changes following abolition of the FHL regime affect them. We help local property owners register for Self Assessment if needed, calculate rental income correctly, claim all allowable expenses, prepare and submit tax returns, and understand their tax obligations, ensuring they stay compliant and minimise their tax bill. It's worth getting it right—missing Self Assessment registration or underpaying tax can result in penalties and interest, while claiming the wrong expenses can trigger HMRC enquiries.

Common Kent Airbnb scenarios:

• Single property hosts — Property owners letting out a spare room or entire property on Airbnb, needing help with Self Assessment registration and tax returns.
• Multiple property owners — Property owners managing multiple short-term lets across Kent, requiring detailed income and expense tracking.
• FHL transition — Property owners previously operating under the furnished holiday lettings regime, needing advice on tax changes following FHL abolition.
• Mixed letting — Property owners combining short-term and long-term rentals, requiring careful income and expense allocation.

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent property owners are dealing with. Self Assessment registration, rental income calculation, expense claims, tax return preparation—we'll handle your Airbnb tax returns that keep you compliant and minimise your tax.

FAQs