London short-let hosts: 90 nights is planning law, not tax

A Londoner who lets their whole flat by the night is dealing with two sets of rules that are often confused. The 90-night limit is planning law. Tax is a separate question, and for most hosts it starts at £1,000 of rent a year, not at 90 nights. With half-term and Christmas bookings coming in, and platforms now sending hosts' figures to HMRC every January, it is worth keeping the two apart.

The 90 nights

In Greater London, using a home as short-term sleeping accommodation counts as a change of use that needs planning permission. The Deregulation Act 2015 carved out an exception. Letting a home this way does not need permission if the nights add up to no more than 90 in a calendar year, and the person providing the accommodation is liable for the council tax on it.

That is a planning limit, enforced by your council. It says nothing about tax. A host who lets for 60 nights still has rental income to consider, and a host who has planning permission to go beyond 90 is taxed on the same basis.

Where tax starts

Short-let income is property income. Under the £1,000 property allowance, if your gross property income in a tax year is £1,000 or less, you do not need to tell HMRC about it. Above that, you can either deduct your actual expenses or deduct a flat £1,000 instead, whichever leaves the lower profit. You cannot use the flat £1,000 if you claim the tax credit for mortgage interest. On HMRC's allowance guidance, between £1,000 and £2,500 you contact HMRC; above £2,500 you register for Self Assessment.

Gross means the total before costs. That matters with booking platforms, because the figure you see paid out is after the platform's fees.

If the flat is your own home and you let it while you are away, look at the Rent a Room scheme as well. It can cover up to £7,500 of gross receipts a year from furnished accommodation in your only or main home, and you cannot use it alongside the £1,000 allowance.

What the platforms send HMRC

Since the start of 2024, digital platforms have collected their sellers' details and income each calendar year and sent them to HMRC by the following January. Hosts who rent out property are included, and the platform needs the address of each property. The 30-sale and 2,000 euro exemption that keeps casual eBay sellers out of the reports applies to sales of goods, not to letting a home.

Two details trip hosts up. The platform's report shows earnings after fees and commission, and it runs January to December, while your tax return runs from 6 April to 5 April. Being reported is not the same as owing tax. But the numbers HMRC holds will not match your return line for line, and you should be able to explain why.

Illustration, not a real client: a nurse in Clapham moved in with her partner in 2024 and now lets her old flat by the night, 60 nights in the 2025/26 tax year. Guests paid £9,000. The platform kept £1,350 in fees and paid her £7,650. Her gross property income is £9,000, not £7,650, so she is well past the £1,000 allowance and must tell HMRC. She can deduct her real costs, including the £1,350 of fees and cleaning, or a flat £1,000, whichever is larger.

If you thought you were a holiday let

The furnished holiday let tax rules were abolished from 6 April 2025. Since then, short-let income has been taxed like any other rent. Mortgage interest gives a basic rate tax credit instead of a deduction, and replacing furniture gets replacement of domestic items relief rather than capital allowances.

For most London hosts the change made little difference. To count as a holiday let, a property had to be let commercially to the public for at least 105 days a year. A whole home kept within London's 90 nights could not meet that on its own. Our note on what changed when the holiday let rules ended covers the hosts it did affect.

The dates

A paper return for 2025/26 must reach HMRC by 31 October 2026. Online, the deadline is 31 January 2027, which is also when any tax is due, and when the platforms send HMRC their figures for calendar year 2026.

If you let below £1,000 a year, keep your records and that may be all. Above it, our guide to when the £1,000 allowance beats claiming expenses will help you choose. Either way, count the nights for your council and the pounds for HMRC. They are different totals.

About the author

Harvey Dhillon is Founder and CEO of Zmartly, a UK accountancy firm for small businesses. He grew up in West London and began his career in investment banking finance at Barclays, before going full-time on Zmartly in 2020. He is a Chartered Management Accountant (ACMA, CGMA).

Featured photo by Fred Kleber on Unsplash.