Built for UK Airbnb hosts

Cleaning, platform fees, council tax & replacements — tracked in one app

FHL is gone. Mortgage interest is restricted. Furniture is on Replacement of Domestic Items relief now. Track every short-let cost the right way for the new rules.

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Free on iOS & Android Post-FHL rules SA105 ready

FHL was abolished on 6 April 2025 — the rules have changed for everyone

The Furnished Holiday Lettings (FHL) tax regime was abolished from 6 April 2025. Capital allowances on fixtures and furniture are gone — replaced by Replacement of Domestic Items relief. Mortgage interest is no longer a deductible expense — it's restricted to a 20% basic-rate tax credit. Short-let income is reported on the SA105 UK Property pages along with any long-let income, not on separate FHL pages. If you've been running an Airbnb under FHL rules, the 2025-26 tax return is the first one under the new regime.

Built for short-let hosts

What PocketReceipt tracks for Airbnb hosts

Cleaning & turnover costs

Per-turnover cleaning fees, deep cleans, laundry. The biggest line for most hosts.

Platform & channel fees

Airbnb host-only fee or split-fee commission, Vrbo / Booking.com commission, channel managers.

Council tax / business rates

Council tax for residential lets, business rates (often with Small Business Rate Relief) for commercially-let properties.

Utilities & broadband

Gas, electric, water, broadband. All allowable when the property is let.

Replacement of Domestic Items

Replacement sofas, mattresses, kettles, crockery — claim under Replacement of Domestic Items relief (post-FHL).

Insurance & licensing

Specialist short-let insurance, Scottish STL licence, planning applications, Hostaway / Beds24 subscriptions.

A typical month

A typical Airbnb host's month, tracked

Pay cleaner per turnover, scan each invoice
Pay monthly utilities bill (electric, gas, broadband), receipts auto-forwarded
Replace a worn-out mattress and a dropped lamp, scan receipts for Replacement of Domestic Items relief
Pay annual short-let insurance premium, scan policy
Renew Scottish STL licence or English short-let registration, scan council letter
Export monthly summary, reconcile Airbnb payout report against bank, send to accountant

What you can claim

Allowable expenses for UK Airbnb hosts (post-FHL, 2025-26 onwards)

UK property income is reported on the SA105 (UK Property) pages of your Self Assessment, not the SA103 self-employment pages. HMRC lets you deduct any cost that is wholly and exclusively for the let. The table below lists the categories with the SA105 grouping shown alongside — exact box numbers change year to year, so always cross-check against the current SA105 Notes. The biggest changes from 6 April 2025 onwards are highlighted in red below.

Expense	Claim?	SA105 category	Notes
Cleaning fees paid to cleaner per turnover, deep cleans, end-of-season cleans	Yes	Costs of services provided, including wages	The biggest single line for most hosts. Keep cleaner invoices (or written log if you pay cash).
Laundry — sheets, towels, duvet covers (commercial laundry service or home washing)	Yes	Costs of services provided	Commercial linen services typical for busier hosts. Home-washing costs apportion realistically.
Airbnb / Vrbo / Booking.com platform commission	Yes	Legal, management and other professional fees	Airbnb's split-fee (typically 14-16%) or host-only fee (3%) is allowable. Same for Vrbo, Booking.com, Expedia commission. Report gross bookings as income then claim commission separately — digital platforms reporting rules in force since 1 January 2024 mean Airbnb tells HMRC your gross.
Channel manager / property management software (Hostaway, Beds24, Smoobu, Lodgify, Guesty)	Yes	Other allowable property expenses	Monthly software subscriptions — fully allowable.
Council tax (residential) OR business rates (commercial-let property)	Yes	Rent, rates, insurance, ground rents	Many short-lets switch to business rates and qualify for Small Business Rate Relief (often 100% relief on rateable value under £12,000). Talk to your council.
Utilities — gas, electric, water, broadband, TV licence	Yes	Other allowable property expenses	Allowable in full when the property is dedicated to letting. Apportion if you also use it personally.
Specialist short-let / holiday-let insurance (building, contents, public liability)	Yes	Rent, rates, insurance, ground rents	Standard residential landlord insurance doesn't cover short-term lets — most hosts need a specialist policy (Pikl, Schofields, Intasure, NFU). Annual premium fully allowable.
Property repairs and maintenance — boiler servicing, gardening, gutter clearing, light bulb replacements	Yes	Property repairs and maintenance	Day-to-day fixes to keep the property in lettable condition. Improvements (extending the kitchen, adding a new room) are capital, not allowable.
Replacement of Domestic Items — mattresses, sofas, kettles, crockery, bedding, lamps, white goods, TVs	Yes	Other allowable property expenses	New rule from 6 April 2025: capital allowances on furniture are gone. Replacement of Domestic Items relief now applies — you claim the cost of like-for-like replacements (not the initial purchase). Document the item replaced and the date.
Welcome packs — tea, coffee, milk, toiletries, soaps, biscuits provided in the let	Yes	Other allowable property expenses	Consumables provided to guests are direct cost of providing the let.
Annual Gas Safety check (CP12 certificate), PAT testing, EICR electrical safety certificate, EPC, smoke alarm batteries	Yes	Property repairs and maintenance	Statutory safety checks for a let property. CP12 is annual; EICR every 5 years; EPC every 10 years.
Scottish Short-Term Let licence fee (mandatory since 1 October 2023)	Yes	Legal, management and other professional fees	Council-issued licence required for all Scottish STLs. Allowable in full.
Planning application fees (where required for change of use)	Yes	Legal, management and other professional fees	Allowable when needed to operate the let — e.g. London's 90-day cap rule, change-of-use applications in some councils.
Accountant fee for preparing the SA105 pages	Yes	Legal, management and other professional fees	Including the cost of preparing your Self Assessment.
Advertising the property — Airbnb featured listings, photography, leaflets	Yes	Other allowable property expenses	Professional photography for listings is a one-off allowable cost.
Mortgage interest on the rental mortgage	No (deduction) / Yes (20% credit)	Residential property finance costs (separate)	Post-FHL (6 April 2025): mortgage interest is no longer a deductible expense — it's restricted to a 20% basic-rate tax credit. Enter the total interest separately on the SA105 and HMRC reduces your tax bill by 20% of it, not your taxable profit by the full amount.
Capital allowances on fixtures, furniture and furnishings (the FHL "AIA-style" treatment)	No (post 6 April 2025)	—	Abolished with FHL on 6 April 2025. No new capital allowances claims on furniture or fixtures. Use Replacement of Domestic Items relief on like-for-like replacements instead. WDA on existing pools can still be claimed until exhausted.
Improvements (extending the kitchen, adding an en-suite, loft conversion)	No	—	Capital expenditure — not deductible against income. May reduce Capital Gains Tax on eventual sale.
Travel from your home to the let property (just to "check on it")	No	—	HMRC takes a strict view on landlord travel. Allowable only for genuine business journeys (e.g. travelling to fix an emergency, attend a viewing). Routine "checking on it" is not allowable.
Furnishing the property when first bought	No	—	Initial purchases of furniture, sofa, beds, kitchenware before the first let are not allowable. Capital expenditure. (Post-FHL: no AIA / capital allowances either.)
Your own holidays at the property when not letting	No	—	Personal-use days reduce the allowable proportion of expenses. Keep a calendar showing which weeks were let, which were personal-use, which were vacant-and-available.
Parking fines, speeding fines, council penalty notices	No	—	Fines are never allowable.

Categories from HMRC SA105 Notes 2026. Exact box numbers change year to year — always cross-check against the current SA105 Notes when filing. If your annual gross property income is under £1,000 you don't need to declare it (Property Income Allowance).

FHL abolished — what's changed for the 2025-26 return

If you were filing your Airbnb under the Furnished Holiday Lettings regime up to 5 April 2025, three things change for the tax year starting 6 April 2025:

1. Mortgage interest is no longer deductible — it's now restricted to a 20% basic-rate tax credit, the same as a long-term residential let. Higher-rate taxpayers lose materially.

2. Capital allowances on furniture and fixtures are gone — Replacement of Domestic Items relief takes their place. You can only claim the cost of replacing items, not initial purchases. Existing capital allowance pools can still be written down to exhaustion.

3. Property income is now reported alongside any long-let property on a single SA105 — no separate FHL pages.

The big losers are higher-rate taxpayers with mortgaged short-lets — interest relief drops from ~40% to 20%. Most hosts should review their cost structure before filing the 2025-26 return.

Worked example

Sarah, an Edinburgh Airbnb host with one 2-bed cottage

The setup

Sarah is 41, works in marketing on £35,000 PAYE, and owns a 2-bed cottage in Stockbridge that she lets short-term through Airbnb and Vrbo. The cottage is licensed under the Scottish STL scheme. She averages 240 let-nights at £100, so gross income for 2025-26 is £24,000. Her mortgage interest is £6,000 a year. This is her first tax year under the post-FHL rules — last year she could deduct the full £6,000 interest; this year she can't.

What she claims at year end (against the £24,000 gross)

Tracked through PocketReceipt across the year:

Cleaning fees — 80 turnovers × £80 (Costs of services)£6,400

Airbnb + Vrbo commission, ~10% blended (Legal/management)£2,400

Business rates (with Small Business Rate Relief) (Rent/rates)£600

Utilities — electric, gas, water, broadband (Other allowable)£1,800

Specialist short-let insurance (Rent/rates/insurance)£450

Linen, welcome-pack consumables, toiletries (Other allowable)£600

Replacement mattress + sofa + kettle under Replacement of Domestic Items relief£900

Annual Gas Safety check + EICR (5-yr cost ÷ 5) + smoke alarms (Repairs)£200

Hostaway channel manager subscription (Other allowable)£420

Scottish STL licence renewal, 3-yr cost ÷ 3 (Legal/management)£140

Accountant fee (Legal/management)£380

Total allowable expenses£14,290

The maths (post-FHL)

Gross property income £24,000 minus £14,290 of expenses leaves a taxable property profit of £9,710. Sarah's £35,000 PAYE income has already used her £12,570 personal allowance, so the full £9,710 falls in the basic-rate band at 20% — Income Tax of £1,942.

Mortgage interest of £6,000 is NOT a deductible expense post-FHL. Instead it generates a basic-rate tax credit of 20% × £6,000 = £1,200, which reduces the £1,942 of Income Tax to £742. Property income is not subject to Class 4 NICs.

What it would have cost without records (and under the old FHL rules for context)

If Sarah had only claimed the obvious — cleaning, Airbnb fees and utilities (~£10,600) — and missed the Replacement of Domestic Items relief, the safety checks and the channel manager, her taxable profit would be £13,400. Income Tax at 20% would be £2,680, less the £1,200 credit = £1,480. The records save her £738 a year. Under the old FHL rules (pre-6 April 2025) she could have deducted the full £6,000 interest as an expense — that would have saved her another £960 a year. The FHL abolition costs Sarah real money.

MTD ITSA — Sarah's caught from April 2028

The MTD ITSA threshold uses gross income (turnover before expenses), not profit. Sarah's £24,000 gross property income puts her under the £30,000 threshold for the 2027-28 tax year but over the £20,000 threshold from 6 April 2028.

From 6 April 2026 anyone with gross self-employment + property income over £50,000 must file 5 times a year instead of 1: four quarterly cumulative updates (due 7 August, 7 November, 7 February and 7 May) plus a Final Declaration on 31 January. The threshold drops to £30,000 from 6 April 2027 and £20,000 from 6 April 2028 — catching Sarah and most active short-let hosts. The qualifying-income test uses the previous tax year's Self Assessment. Once in, you can only opt out again after 3 consecutive tax years below the threshold. Note: PAYE employment income is NOT included in the MTD threshold test — only self-employment plus property.

What goes wrong

Common tax mistakes UK Airbnb hosts make

Still deducting mortgage interest as a full expense post-6 April 2025The FHL regime was abolished on 6 April 2025. Mortgage interest is now restricted to a 20% basic-rate tax credit — even on furnished holiday lets that previously qualified for full deduction. Higher-rate taxpayers feel this most.
Claiming initial furniture purchases under "Replacement of Domestic Items relief"The relief only applies to LIKE-FOR-LIKE REPLACEMENTS of items that already existed in the let. First-time furniture purchases when starting the let are capital expenditure — not allowable as a revenue expense. Document the item being replaced and the date.
Reporting only the net amount paid by AirbnbAirbnb deducts its service fee before paying you. From 1 January 2024 Airbnb is required to report your GROSS bookings to HMRC under the Digital Platforms Reporting Rules. Your tax return should match: report gross income, then claim the commission as a separate expense.
Confusing the Rent-a-Room scheme with the Property Income AllowanceRent-a-Room: £7,500 a year tax-free for letting a furnished room in your main home (not a separate property, not a whole let). Property Income Allowance: £1,000 across all property income, applies to anyone. You can't use both at once on the same income.
Claiming travel costs to "check on the property"HMRC takes a strict view on landlord travel. Only allowable when there's a clear business purpose — repairing an emergency, attending a check-in, dealing with a complaint. Routine drive-bys are not allowable.
Forgetting the Scottish STL licence or English short-let registrationScotland's licensing regime has been mandatory since 1 October 2023 for all short-term lets. Welsh statutory registration is coming. England's national register is in the Levelling-up Act 2023. Licence and registration fees are allowable trade costs — and operating without one can invalidate insurance.
Treating service-heavy hosting as property incomeIf you provide breakfast, regular daily cleaning of occupied rooms, towels-as-you-go, concierge — HMRC may treat your activity as a TRADE (SA103) not property (SA105). Trade income is subject to Class 4 NICs (6% / 2%) but allows full expense deduction including mortgage interest. The threshold for crossing into trade is a judgement call — get accountant advice.
Mortgage capital repayments confused with interestOnly the interest element of the mortgage payment generates the 20% tax credit. The capital element (paying down the loan principal) is never tax-relievable. Check the lender's annual statement.
Forgetting the Annual Gas Safety check, EICR or smoke alarm requirementsRenting a property without a CP12 certificate, valid EICR (every 5 years for short-lets in most councils) or working smoke / CO alarms can invalidate your insurance and breach licence conditions. Tax-allowable, mandatory regardless.
Missing the 5 October registration deadlineIf you started letting in the 2025-26 tax year and gross income exceeds £1,000 (Property Income Allowance) or £7,500 (Rent-a-Room) you must register for Self Assessment by 5 October 2026. HMRC can charge a "failure to notify" penalty.

Plan ahead

Year-end tax tips for Airbnb hosts

Reconcile Airbnb / Vrbo / Booking.com annual statements before filingEach platform issues an annual transaction summary. Pull all platforms, add them, and compare to bank. The gross figure (before commission) is what HMRC has from digital platforms reporting — your SA105 turnover must match.
Time big replacements before 5 April if you need themReplacement mattress, sofa, white goods bought before 5 April pull the Replacement of Domestic Items relief into the current tax year. Document the old item being replaced.
Pay annual short-let insurance, licence renewal and Hostaway / channel manager before 5 AprilRenewals paid before 5 April land the deduction in the current tax year rather than rolling into next year.
Check if you should switch to business rates with Small Business Rate ReliefWhole-property short-lets used more than 140 days a year typically qualify for business rates instead of council tax. With rateable value under £12,000 most hosts get 100% Small Business Rate Relief — saving thousands. Check with your council and the Valuation Office Agency.
Track let-nights vs personal-use nightsPersonal-use weeks reduce the allowable proportion of fixed costs (insurance, utilities, council tax). A clear calendar is your best defence in an HMRC enquiry.
If you're a higher-rate taxpayer with a mortgaged short-let, model the post-FHL impactThe FHL abolition is a real cost for higher-rate taxpayers — interest relief drops from 40% to 20%. Some hosts will find the activity becomes uneconomic; others may consider switching to long-let (Section 24 applies the same restriction either way) or reviewing finance structure.
If gross income is over £20,000, plan for MTD ITSA from 6 April 2028From 6 April 2028 hosts with combined self-employment + property income over £20,000 must file four quarterly cumulative updates plus a Final Declaration each year. From 6 April 2027 the £30,000 threshold catches busier hosts. The qualifying-income test uses the previous tax year's return.

Common questions

FAQ for Airbnb hosts

Is my Airbnb income property income or self-employment for tax?

For most hosts it's property income — declared on the SA105 UK Property pages, not the SA103 self-employment pages. The exception is if you provide significant services beyond accommodation (breakfast, regular cleaning of occupied rooms, like a guest house or B&B) — HMRC may treat that as a trade instead. Property income is not subject to Class 4 NICs; trade income is.

I heard the Furnished Holiday Lettings tax regime was abolished. Is that true?

Yes. The FHL tax regime was abolished from 6 April 2025 for Income Tax and Capital Gains Tax. From the 2025-26 tax year onwards, FHL income is treated the same as any other UK property income. Capital allowances on fixtures and furniture are no longer available — Replacement of Domestic Items relief takes their place. Mortgage interest is no longer fully deductible — it's restricted to a 20% basic-rate tax credit, the same as a long-term residential let.

Can I still claim mortgage interest on my Airbnb?

Not as a deductible expense. Since 6 April 2025 (when FHL was abolished) residential property finance costs — including the mortgage interest on a short-let property — are restricted to a 20% basic-rate tax credit. You enter the figure separately on the SA105 and HMRC reduces your tax bill by 20% of it, rather than reducing your taxable profit by the full amount.

What is the Rent-a-Room scheme — does it apply to Airbnb?

Yes — if you let a furnished room (not a separate property) in your own main home. The Rent-a-Room scheme exempts up to £7,500 a year of gross income from tax. If you earn more than £7,500 you can either pay tax on the excess (no expense deductions) or opt out and use the normal property-income rules (expenses deductible against gross). Doesn't apply if you let a whole separate property.

What does MTD ITSA mean for me as an Airbnb host?

The MTD ITSA threshold uses GROSS income (turnover before expenses), not profit. From 6 April 2026 anyone with combined self-employment + property income over £50,000 must file 5 times a year. The threshold drops to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. Most active Airbnb hosts have gross income above £20,000 once they're letting more than a few weekends a year, so will be caught from April 2028 at the latest. PAYE income is excluded from the threshold test — only SE + property count.

When is my tax due?

Self Assessment for the 2025-26 tax year is due online by 31 January 2027. If your tax bill is more than £1,000 you also pay 50% as a first payment on account that day, and another 50% on 31 July 2027. Hosts above MTD thresholds also file quarterly cumulative updates from their relevant start date.

Sources & further reading

HMRC and PocketReceipt references used on this page

HMRC, Abolition of the Furnished Holiday Lettings tax regime (6 April 2025)
HMRC, Clarification on abolition of the FHL regime
HMRC, PIM4165 — Repeal of Furnished Holiday Lettings rules
HMRC, Renting out a property — overview
HMRC, Rent-a-Room scheme (£7,500 annual allowance)
HMRC, SA105 — Self Assessment UK Property pages
HMRC, Replacement of Domestic Items relief — HS253 helpsheet
HMRC, Section 24 mortgage interest restriction (20% basic-rate credit)
HMRC, Property Income Allowance (£1,000)
HMRC, Selling goods or services on a digital platform (Airbnb / Vrbo reporting)
HMRC, Self Assessment deadlines
HMRC, Register for Self Assessment (5 October following the tax year)
HMRC, Making Tax Digital for Income Tax — landlords
HMRC, Qualifying income for MTD ITSA (gross income, not profit)
GOV.UK, Scottish Short-Term Let Licensing Scheme
HMRC, Small Business Rate Relief
PocketReceipt, VAT threshold calculator · MTD Forecaster · Allowable expenses guide
PocketReceipt, Best receipt scanner apps for UK sole traders (2026 comparison)

Worked example figures are illustrative. Tax rates use 2025-26 thresholds: personal allowance £12,570; basic-rate Income Tax 20%; the 20% basic-rate residential property finance cost credit (Section 24 ITTOIA 2005). Property income is reported on SA105. Property income is not subject to Class 4 NICs. PocketReceipt is a record-keeping app, not a tax adviser — speak to an accountant for advice on your situation, especially around FHL transition and service-heavy lets.