Just when you thought you’d got your head around the end of the Furnished Holiday Lets tax regime, HMRC has another surprise for you.

When the Furnished Holiday Let (FHL) rules disappeared in April 2025, most of the conversation centred around the tax implications. Less favourable reliefs, changes to capital gains treatment and the usual raft of Budget commentary.

But tucked away behind the headlines is a knock-on effect that’s catching some holiday let owners off guard. Depending on your circumstances, the end of the FHL regime could mean you now have a date with Making Tax Digital (MTD). Not exactly the holiday souvenir you were hoping for.

Here’s the issue.

Under the old rules, Furnished Holiday Lets occupied their own little corner of the tax world. Now, they’re simply part of your property income. That seemingly innocent change could affect whether you’re caught by MTD for Income Tax and the requirement to keep digital records and submit quarterly updates to HMRC. It’s a classic case of one rule change quietly bringing another one along behind it.

And because MTD is being introduced in stages, it’s easy to assume it’s someone else’s problem. We’ve already spoken to property owners who knew all about the abolition of the FHL regime but hadn’t realised there could be a compliance consequence lurking in the background.

The good news is that this isn’t a last-minute panic.

There’s time to understand where you stand, whether MTD applies to you, and what – if anything – you need to do. In many cases, a straightforward review of your property income and wider tax position is enough to give you a clear answer.

At Frost Wiltshire, we’re big fans of avoiding unpleasant surprises. Tax bills, HMRC letters and discovering a new reporting obligation after the event all fall firmly into that category. If you own a Furnished Holiday Let, now’s a good time for a quick health check. We’ll help you work out whether the end of the FHL rules has any wider implications for you and, if it does, make sure you’re ready well before HMRC comes calling.

After all, holidays are supposed to be relaxing. Your tax affairs should be too.