In the context of short-term holiday letting companies, the “Individual” and “Business” DAC7 categories help distinguish between different types of hosts:

Individual
This category includes private individuals who rent out their properties, such as homeowners listing their personal homes or vacation properties on platforms like Airbnb. These persons typically do not operate as formal businesses but engage in rental activities on a more casual or occasional basis. They receive monies as individuals (i.e. the profit goes on their personal tax return), and their tax number would be their National Insurance Number.

Business
This category encompasses legal entities or professional operators who manage multiple properties or run their rental activities as a formal business. This could include property management companies, agencies, estate agents or other organizations that offer short-term rentals as part of their business operations. They would have an associated Company registration number and would use your tax reference details and VAT number.