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.
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.
Airbnb must provide HMRC with a complete yearly summary that includes:
Full name
Address
Date of birth
Bank account used for payouts
National Insurance number (if Airbnb has requested it)
Address of your London short-let
Number of listings
Whether it’s entire place or private room
Total revenue earned during the tax year
Number of bookings
Length of stays
Fees & commissions deducted
Dates the property was listed
Booking history
Nights occupied
This data is delivered directly to HMRC whether or not the host takes any action.
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.
London is one of the most regulated short-let markets in the UK. On top of HMRC rules, hosts must comply with:
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.
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.
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.
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.
Yes. All income is reported. You still may not owe tax, but HMRC will still see the earnings.
The requirement started in 2024, but HMRC may still investigate prior years if they suspect undeclared income.
No. Airbnb only reports. It does not withhold UK income tax.
Yes, unless you're covered entirely by the £1,000 property allowance.
Yes — every digital platform must report earnings.
Yes. Lenders and freeholders increasingly check for unauthorised short-letting. HMRC visibility increases the likelihood that financial institutions may inquire into rental activity.
Potentially yes — platform data includes nights booked and occupancy levels.
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.