Quick answer
Income from holiday lets and short-term lets, including Airbnb, counts as property income for MTD for Income Tax. The separate furnished holiday lettings rules ended on 6 April 2025, so this income is now part of your UK or overseas property business. Your gross takings count towards the threshold.
Gross takings count
A cottage let for £600 a week for 40 weeks brings in £24,000, before cleaning, platform fees and other costs. That’s the figure that counts towards your qualifying income.
Furnished holiday lettings
The special tax regime for furnished holiday lettings was abolished from 6 April 2025. Holiday let income is now treated like other rental income, as part of your UK or overseas property business.
Platforms report to HMRC
Booking platforms now report hosts’ income to HMRC each year. Make sure your own records match what the platform shows.
See MTD for landlords.