London is the UK's biggest serviced accommodation market and also its most regulated. High nightly rates mean turnover climbs quickly, the 90-night rule limits how entire homes can be used, and many operators run a mix of short lets, mid-term corporate stays and managed units. Tally Stay provides specialist serviced accommodation bookkeeping and accounting for London operators, delivered remotely by an ACCA-qualified team.
The 90-night rule and your books
In Greater London, an entire home can be let as short-term accommodation for up to 90 nights in a calendar year without planning permission. Go beyond that and you need consent from the borough for a change of use. Airbnb applies the cap automatically to entire-home listings, but other channels and direct bookings don't, so the responsibility sits with you.
We tag every booking by property and channel, which means your records show nights let per property per calendar year at a glance. That helps you plan when a unit should switch to mid-term lets of 90 nights or more, and it gives you a clear audit trail if a borough ever asks.
VAT comes sooner in London
The VAT registration threshold is £90,000 of taxable turnover in any rolling 12 months. For an R2SA operator, short-stay accommodation income is standard-rated, so two or three central London units can cross the threshold within the first year. We monitor your rolling turnover every month, warn you before you reach the limit, and once you're registered we prepare and file your VAT returns through Making Tax Digital.
If you manage properties for owners and act as their agent, your VAT turnover is normally your commission rather than the full booking value. Getting the agent or principal position right, and documenting it in your management agreements, is one of the most valuable things we check for London management companies.
What we handle for London SA operators
- Airbnb, Booking.com, Vrbo and direct-booking reconciliation, with platform fees and cleaning fees shown gross
- Profit by property, so you can see which boroughs and unit types earn their rent
- Owner statements for managed units, with client money kept separate from your income
- VAT threshold monitoring and quarterly VAT returns
- Council tax or business rates tracking per unit, and the costs of licences, safety certificates and insurance
- Accounts-ready figures for Corporation Tax or Self Assessment
📍 Working with us from London: everything runs online through Xero or QuickBooks and your PMS. Most London clients never need an in-person meeting, and we're available Monday to Friday, 9am to 5pm UK time.
Not in London? See our UK serviced accommodation accounting page, or read the 2026 SA tax guide for the national rules.
Frequently asked questions
Can I let my London property for more than 90 nights a year?
Not as an entire-home short let without planning permission. Above 90 nights in a calendar year the use is treated as a material change of use, so you need consent from the borough. Rooms let in a home you live in, and stays of 90 consecutive nights or more, are treated differently.
Do I need to register for VAT as a London SA operator?
If your taxable turnover goes over £90,000 in any rolling 12-month period, yes. For R2SA operators that usually means gross booking income, which London nightly rates can reach quickly. Managed-property operators acting as agent normally count their commission instead.
Can you work with my London SA business remotely?
Yes. All of our bookkeeping is done securely online in Xero or QuickBooks, so we support operators in every London borough without needing an in-person meeting.