Accounting built for short-term let operators
FHL abolished. Platform reporting to HMRC. Business rates chaos. Visitor levies arriving. The regulatory and tax burden on STL operators is growing more complex every year — and a generalist accountant won't cut it anymore.
The STL tax burden is growing every year
In the last 18 months alone: the FHL regime was abolished, platforms started reporting to HMRC, business rates were revalued, and visitor levies are being introduced across Scotland. Each change adds complexity — and cost — for operators who don't have specialist help.
STL Specialists
We only work with short-term let operators. Every tax rule, allowance, and pitfall — we know it.
FHL Transition Experts
The Furnished Holiday Let regime ended April 2025. We help you navigate what's changed.
Rates Optimisation
Business rates vs council tax? NDR revaluation? We analyse which saves you more.
Multi-Property Ready
From 1 property to 50+. Our packages scale with your portfolio.
Our Services
Everything your STL business needs
Bookkeeping & Reconciliation
Monthly bookkeeping, bank reconciliation, and transaction categorisation. We keep your books clean so you can focus on guests.
Self-Assessment & Tax Returns
Annual self-assessment filing, income calculation, allowable expense optimisation, and HMRC submission.
VAT Returns
Quarterly VAT returns for VAT-registered operators. Advice on flat rate vs standard scheme for STL businesses.
Business Rates Analysis
Should your STL be on business rates or council tax? We analyse the post-2026 landscape and advise on the best option.
Tax Planning & Optimisation
Post-FHL regime strategies. Capital allowances review, expense maximisation, and business structuring (Ltd vs sole trader).
Agency & Portfolio Accounting
Multi-property management accounts, per-property P&L, owner statements, and consolidated reporting for agencies.
Pricing
Simple, transparent pricing
No hidden fees. No surprises. All prices exclude VAT.
For single-property operators
- ✓1 STL property included
- ✓Up to 50 transactions/month
- ✓Monthly bookkeeping
- ✓Annual self-assessment return
- ✓Quarterly management summary
- ✓HMRC platform reporting support
- ✓Email support
For multi-property operators
- ✓Up to 3 STL properties included
- ✓Up to 150 transactions/month
- ✓Monthly bookkeeping & reconciliation
- ✓Annual self-assessment return
- ✓Quarterly VAT returns (if registered)
- ✓Monthly management accounts
- ✓Tax planning advice (annual review)
- ✓MTD (Making Tax Digital) compliance
- ✓Business rates vs council tax analysis
- ✓📊 Client dashboard — real-time income & expenditure
- ✓Visitor levy tracking & compliance
- ✓Phone & email support
For portfolios & agencies
- ✓Up to 10 STL properties included
- ✓Up to 500 transactions/month
- ✓Full bookkeeping & bank reconciliation
- ✓Annual self-assessment or corporation tax return
- ✓Quarterly VAT returns
- ✓Monthly management accounts & P&L
- ✓Dedicated account manager
- ✓Proactive tax optimisation
- ✓Business structuring advice (Ltd vs sole trader)
- ✓HMRC liaison & correspondence
- ✓Capital allowances review (post-FHL changes)
- ✓📊 Client dashboard — real-time income & expenditure
- ✓Visitor levy tracking, collection & remittance
- ✓Annual tax planning session
- ✓Priority phone, email & video support
Need a custom package for your agency? Contact us.
STL Tax Guide
Key Tax Issues for STL Operators in 2026
The tax landscape for short-term let operators has changed dramatically. Here's what you need to know.
1. FHL Tax Regime Abolished (April 2025)
The Furnished Holiday Let (FHL) tax regime was abolished from 6 April 2025. This is the single biggest tax change affecting STL operators in years.
What you've lost:
- • Capital allowances on furniture and equipment
- • Mortgage interest relief treated as a trading expense
- • Profits counting as earned income for pension purposes
- • Business Asset Disposal Relief on sale
- • Capital gains rollover relief
STL income is now treated as standard property business income — the same as a buy-to-let. This means mortgage interest relief is restricted to basic rate tax credit (20%).
2. Platform Reporting to HMRC
Airbnb, Booking.com, and other platforms now report your earnings directly to HMRC. This means:
- • HMRC knows exactly what you earned, even if you don't declare it
- • Discrepancies between platform reports and your tax return will trigger enquiries
- • Accurate bookkeeping is no longer optional — it's essential
If your books don't match what the platforms tell HMRC, expect a letter.
3. Non-Domestic Rates (Business Rates) Crisis
The 2026 rateable values revaluation has caused turmoil. Some operators have seen rate hikes of 400%+. The Scottish Government introduced targeted relief following industry lobbying by the ASSC.
Key decisions for operators:
- • Business rates vs council tax — which saves you more?
- • New evidence window for challenging rateable values
- • 40% post-Covid relief ends March 2026 (England)
- • Small Business Bonus Scheme eligibility
STL Finance can analyse your specific situation and advise on the optimal approach.
4. VAT Registration Threshold
If your STL turnover exceeds the VAT registration threshold (currently £90,000), you must register for VAT. But even below the threshold, voluntary registration can sometimes be beneficial.
Key considerations:
- • Flat Rate Scheme vs Standard Rate — which is better for your STL?
- • Input VAT recovery on furnishings, renovations, and running costs
- • Impact on pricing — can you absorb or pass on VAT?
- • Multi-property portfolios may breach the threshold sooner than expected
5. Allowable Expenses
Maximising allowable expenses is critical for reducing your tax bill. STL operators can typically claim:
- • Insurance premiums
- • Mortgage interest (20% credit)
- • Repairs and maintenance
- • Utilities
- • Council tax / business rates
- • Cleaning costs
- • Platform fees (Airbnb, Booking.com)
- • Advertising and listing costs
- • Professional fees (accountant, licensing)
- • Linen, consumables, amenities
- • Travel to property (reasonable)
- • Replacement of domestic items
6. Capital Allowances Post-FHL
With the FHL regime gone, capital allowances on furniture and equipment are no longer available for most STL operators. Instead, you can claim under the Replacement of Domestic Items Relief — but only for like-for-like replacements, not upgrades.
If you made significant capital investments while the FHL regime was in place, there may still be carried-forward allowances to claim. STL Finance can review your position.
7. Visitor Levy — A New Tax on STL Operators
Edinburgh will introduce a 5% visitor levy from 24 July 2026 — the first in the UK. STL operators will be responsible for collecting the levy from guests and remitting it to the council.
What this means for you:
- • You must add 5% to your nightly rate or absorb the cost
- • New bookkeeping requirements to track levy collection
- • Regular remittance to the local authority
- • Record-keeping obligations for audit purposes
- • Non-compliance will result in penalties
And it's spreading: Perth & Kinross are consulting (vote delayed to June). Falkirk is consulting. Glasgow is considering it. Wales has legislated for a visitor levy from April 2027. This will become a standard compliance obligation for STL operators across the UK.
STL Finance Silver and Gold packages include visitor levy tracking, collection support, and remittance accounting.
7. Scotland vs England Tax Differences
Cross-border operators face additional complexity:
- • Scottish income tax rates differ from England (5 bands vs 3)
- • LBTT (Scotland) vs SDLT (England) on property purchases
- • NDR revaluation timelines differ
- • Scottish STL licensing adds compliance costs not present in England (yet)
- • Edinburgh visitor levy (5% from July 2026) — first in the UK
Ready to get your STL finances sorted?
Book a free introductory call. We'll review your current setup and recommend the right package.