Furnished holiday letting rules, Making Tax Digital for Income Tax, Airbnb and platform income, VAT and tax planning for owners of short-term rental properties across North Yorkshire.
Holiday lets in North Yorkshire are popular for good reason — the area attracts visitors year-round and short-term rental yields can be attractive. But owning a holiday let brings a more complex tax position than many owners expect, and that complexity has increased significantly in recent years.
The furnished holiday letting rules that previously gave holiday let owners significant tax advantages — including capital allowances and the ability to treat profits as earned income for pension purposes — changed substantially in April 2025 when the FHL regime was abolished. Understanding what those changes mean for your specific situation is something we work through with every holiday let client.
Making Tax Digital for Income Tax is now the most pressing issue for many holiday let owners. Because MTD-IT applies based on gross rental income — not profit — owners of even modestly profitable lets can find themselves caught by the threshold.
Holiday let taxation has its own distinct set of rules. Here's what we manage for our holiday let clients.
Annual self assessment returns covering holiday let income, allowable expenses and the correct tax treatment for your specific situation — prepared and filed accurately.
Quarterly digital reporting, software setup or full management on your behalf — whatever level of involvement suits you. We make sure you're compliant without it taking over your time.
60-day CGT reporting on disposal, planning around the timing of sales, and advice on the CGT implications following the abolition of the FHL regime's business asset disposal relief.
Holiday letting can trigger VAT registration obligations where gross income is significant. We advise on your position and register you if required — including the correct treatment of platform-collected income.
Cleaning, maintenance, insurance, platform fees, furnishings, mortgage interest — we make sure all legitimate costs are correctly claimed to minimise your tax liability.
Airbnb, Booking.com, Sykes and other platforms all report income to HMRC under the DAC7 rules. We make sure your returns are consistent with platform reporting and nothing is inadvertently omitted.
Holiday let taxation has changed significantly — the FHL regime, MTD-IT, the DAC7 platform reporting rules. We keep up with the changes and make sure our clients aren't caught out by something they didn't know had happened.
Some clients want to stay close to their numbers. Others just want the compliance handled. We work both ways — and for holiday let owners who simply want the MTD-IT problem to go away, we can take care of it entirely.
We're based in Pickering and work with holiday let owners across North Yorkshire — one of the most active short-term rental markets in the north of England. We understand the seasonal patterns and the local context.
Free initial consultation, no obligation. Whether you're dealing with MTD-IT, planning a disposal, or just want to make sure your tax affairs are in order — get in touch.