Edinburgh is one of the busiest short-let cities in the UK and the one with the most rules attached. Licensing, a citywide control area, Scotland's non-domestic rates thresholds and the new Visitor Levy all affect how an SA business is run and how its books should be kept. Tally Stay provides specialist serviced accommodation bookkeeping and accounting for Edinburgh operators, delivered remotely by an ACCA-qualified team.
Short-term let licensing and planning
Every short-term let in Scotland must be licensed by the local council, and in Edinburgh the whole city is a short-term let control area. That means a property that isn't the host's main home normally needs planning permission for short-term letting as well as a licence. Licence fees, safety certificates, inspections and any planning costs are legitimate business costs, and we record them against the right property so you can see the full cost of each unit.
The Edinburgh Visitor Levy
Edinburgh's Visitor Levy adds 5% to the accommodation cost of the first five consecutive nights of a stay, for stays from 24 July 2026. You collect it from guests and pay it over to the council, so it's money you hold, not income you've earned. We record levy amounts separately from your revenue so they don't inflate your profit, your VAT turnover or your owner statements, and so your levy returns reconcile to your bookings.
Rates, festivals and VAT
In Scotland, a self-catering property is liable for non-domestic rates rather than council tax if it's available to let for at least 140 days a year and actually let for at least 70. We track each unit's letting days so you know where you stand. August festival pricing can push turnover up sharply in a single month, and once your rolling 12-month taxable turnover passes £90,000 you must register for VAT. We monitor this every month.
What we handle for Edinburgh SA operators
- Monthly bookkeeping with tracking by property and channel
- Airbnb, Booking.com and direct-booking reconciliation
- Visitor Levy recorded separately and reconciled
- Licence, planning and compliance costs tracked per unit
- Owner statements for managed properties
- VAT monitoring and returns, and figures for Scottish income tax or Corporation Tax
We also support operators in Glasgow, the Highlands and across Scotland. See our UK serviced accommodation accountants page for how we work.
Frequently asked questions
Do I need a short-term let licence in Edinburgh?
Yes. Every short-term let in Scotland needs a licence from the local council before it operates. In Edinburgh, a property that isn't your main home usually also needs planning permission because the whole city is a short-term let control area.
How does the Edinburgh Visitor Levy affect my accounts?
The levy is 5% of the accommodation cost for the first five consecutive nights of a stay, for stays from 24 July 2026. It is collected from guests and paid to the council, so it isn't your income. We record it separately from your revenue so it doesn't inflate your profit or VAT turnover.
Is Scottish income tax different for SA operators?
Yes. If you live in Scotland and run your SA business as a sole trader or partnership, your profits are taxed at Scottish income tax rates, which have more bands than the rest of the UK. Limited companies pay UK Corporation Tax wherever they are.