Short-let hosting in London continues to grow, with thousands of homeowners using platforms like Airbnb, Booking.com, and VRBO to generate additional income. But with this rise has come tighter UK-wide tax compliance rules — and one of the biggest questions London hosts ask is:

“Will Airbnb automatically report my income to HMRC?”

The short answer is yes.
Since 1 January 2024, Airbnb is legally required to collect and share detailed income information about UK hosts with HMRC. This has changed the tax landscape entirely, especially in cities like London where short-letting is heavily scrutinised.

This blog explains how the reporting works, what HMRC sees, what London hosts must do to stay compliant, and how Pass the Keys can support you.

Why Is Airbnb Reporting Income to HMRC?

Airbnb now reports income under an international transparency law known as DAC7 (OECD Model Rules for Digital Platforms).

This legislation requires all digital platforms — not just Airbnb — to share user earnings with tax authorities.

In the UK, this means:

• Airbnb → HMRC

• Booking.com → HMRC

• VRBO → HMRC

• Any smaller platform operating in the UK → HMRC

For London hosts, where short-let activity is closely monitored because of the 90-night rule, this automatic reporting means HMRC can now cross-check:

• Income earned

• Nights booked

• Number of stays

• Host identity information

• Property address

• Platform fees deducted

Tax non-compliance is now much harder to overlook.

What Exactly Does Airbnb Report to HMRC?

Airbnb must provide HMRC with a complete yearly summary that includes:

1. Personal identification details

• Full name

• Address

• Date of birth

• Bank account used for payouts

• National Insurance number (if Airbnb has requested it)

2. Property information

• Address of your London short-let

• Number of listings

• Whether it’s entire place or private room

3. Financial data

• Total revenue earned during the tax year

• Number of bookings

• Length of stays

• Fees & commissions deducted

4. Platform activity

• Dates the property was listed

• Booking history

• Nights occupied

This data is delivered directly to HMRC whether or not the host takes any action.

Does This Replace Filing a Tax Return?

No.
Even though Airbnb reports your income, you must still declare it on your tax return.

You need to complete a Self Assessment tax return if:

• You earn over £1,000 from property income (after the allowance)

• You earn over £7,500 under the Rent-a-Room scheme (for room rentals only)

• Your property qualifies as a Furnished Holiday Let (FHL)

• You operate multiple listings or rent out more than one London property

Failing to declare income is considered under-declaration, even if Airbnb has already shared the information.

How Does This Affect Hosts in London Specifically?

London is one of the most regulated short-let markets in the UK. On top of HMRC rules, hosts must comply with:

• The 90-night rule

Entire-home listings in London boroughs are capped at 90 nights per calendar year, unless the host obtains full change-of-use planning permission.

Airbnb also enforces this automatically.

• Borough-specific licensing

Some London boroughs (e.g., Westminster, Camden, Kensington & Chelsea) are increasingly strict on:

• Planning breaches

• Unregistered commercial lets

• Anti-social behaviour linked to short-lets

If your listing is fully booked year-round, HMRC data plus platform activity can alert councils to potential rule breaches.

• Council tax vs business rates

If your property qualifies as a Furnished Holiday Let and is occupied over 140 nights, you may be moved onto business rates.

HMRC reporting adds transparency here too.

What Happens If HMRC Spots a Discrepancy?

HMRC is now using sophisticated data-matching tools. If your declared income does not match the data from Airbnb, HMRC may:

• Issue a nudge letter, requesting clarification

• Open a compliance check

• Charge late penalties and interest

• Initiate a full investigation in serious cases

Most errors can be corrected early if you respond promptly.

FAQ: Airbnb Reporting & HMRC 

1. Does Airbnb report income even if I earned less than £1,000?

Yes. All income is reported. You still may not owe tax, but HMRC will still see the earnings.

2. Will Airbnb report past years?

The requirement started in 2024, but HMRC may still investigate prior years if they suspect undeclared income.

3. Does Airbnb deduct tax for me?

No. Airbnb only reports. It does not withhold UK income tax.

4. Do I need to declare my London Airbnb income if I only rent a few weekends?

Yes, unless you're covered entirely by the £1,000 property allowance.

5. Does this include Booking.com and VRBO?

Yes — every digital platform must report earnings.

6. Could this affect my mortgage or lease?

Yes. Lenders and freeholders increasingly check for unauthorised short-letting. HMRC visibility increases the likelihood that financial institutions may inquire into rental activity.

7. Will HMRC know if I exceed London’s 90-night rule?

Potentially yes — platform data includes nights booked and occupancy levels.

Conclusion: How Pass the Keys London Can Help Hosts Stay Compliant

Navigating HMRC reporting rules, tax allowances, London’s 90-night cap, and borough-specific planning requirements can be overwhelming for hosts.
This is where Pass the Keys London provides invaluable support.

As a fully managed short-let partner, Pass the Keys helps London hosts:

• Track income and occupancy accurately

• Monitor London’s 90-night rule automatically

• Ensure listings meet local planning rules

• Provide clear financial statements for tax filing

• Manage guest vetting, cleaning, and maintenance

• Reduce the risk of compliance issues or penalties

If you want your London short-let to be profitable, compliant, and stress-free, Pass the Keys is the UK’s leading management service to support you.