CalmHost Insights
Making Tax Digital for short-term rental hosts: what changes now
Making Tax Digital for Income Tax - often shortened to MTD for Income Tax or MTD ITSA - is no longer a distant change for many UK hosts. From 6 April 2026, some landlords and sole traders must use HMRC-compatible software to keep digital records and send updates during the year.
If you host short stays, the important question is not simply what your Airbnb or direct-booking income was. It is whether your total qualifying income puts you into MTD.
The headline: check your gross qualifying income
MTD for Income Tax applies to individuals who are registered for Self Assessment, have self-employment or property income, and are above the relevant threshold. HMRC describes qualifying income as total income from self-employment and property before expenses - in other words, turnover rather than profit.
That means a host should not look only at one listing, or only at their short-term-rental profit. If you also have another rental property or self-employment income, those sources can be added together for the MTD test. PAYE employment income, dividends and pension income do not count towards qualifying income, although they may still need to be included in your eventual tax return. See MTD qualifying income worked examples for practical one-property and combined-income scenarios.
For example, a host with £28,000 of gross property income and £24,000 of self-employment income has qualifying income of £52,000. Even if the short-term rental alone is below the threshold, the combined figure matters.
The current timetable
| Your qualifying income in the previous tax year | When MTD for Income Tax starts |
| --- | --- |
| More than £50,000 in 2024 to 2025 | 6 April 2026 |
| More than £30,000 in 2025 to 2026 | 6 April 2027 |
| More than £20,000 in 2026 to 2027 | 6 April 2028 |
HMRC reviews the relevant Self Assessment return, but it remains your responsibility to check whether you need to use the service. If you think you fall within a threshold but have not heard from HMRC, use its eligibility tool or speak to your accountant.
What changes once you are in MTD
MTD changes the rhythm of record keeping and reporting. You, or an agent acting for you, will use compatible software to keep digital records of eligible self-employment and property income and expenses. The software is then used to send quarterly updates to HMRC, complete the end-of-year process and submit the tax return.
Quarterly updates are not the same as a final tax calculation. The important point for hosts is that a tidy record of bookings, income, fees and costs becomes more useful throughout the year, rather than only when January approaches. You will still need to complete the final declaration through compatible software, and tax due is paid by 31 January after the end of the tax year.
HMRC does not provide the compatible software itself. Check with any provider you are considering that it supports your circumstances before committing to it.
A short-let host's practical checklist
1. Look back at the right figure. Find the gross property and self-employment income on the relevant Self Assessment return, before expenses.
2. Include all relevant sources. Do not treat one Airbnb listing as the whole test if you also receive other property or self-employment income.
3. Use the HMRC checker. It can help you establish whether you need to start now, later, or may be exempt.
4. Choose the right software early. If you use an accountant, agree who will do what before the first quarterly update is due.
5. Keep your booking information organised. Booking income, commissions, cleaning and other costs should be easy to trace back to the underlying records.
Where CalmHost fits - and where it does not
CalmHost can help you organise and understand the financial side of hosting: bookings, revenue, costs, reports and a booking ledger that is easier to discuss with your accountant. It is not MTD-compatible filing software and does not submit quarterly updates or tax returns to HMRC.
That distinction matters. Use CalmHost to keep the commercial picture clear, then use your accountant or HMRC-compatible software for the formal MTD process.
Deadlines are only part of the job
MTD is one of several administrative obligations a host may need to stay on top of. CalmHost WATCH is a free reminder service for short-term-rental hosts: tell us a little about your property and we will help keep the important dated tasks in view.
Sources and further reading
• [HMRC: Find out if and when you need to use Making Tax Digital for Income Tax](https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax)
• [HMRC: Work out your qualifying income for Making Tax Digital for Income Tax](https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax)
• [HMRC: Making Tax Digital for Income Tax for sole traders and landlords - step by step](https://www.gov.uk/government/collections/making-tax-digital-for-income-tax-for-businesses-step-by-step)
*This article is general information, not tax advice. Your circumstances may differ, so consult a qualified accountant or tax adviser where appropriate.*