The sun has got its hat on
The sunshine over the past few days has encouraged a lot of us to venture outdoors and even book a few days away to make the most of it.
Many of us rediscovered beautiful corners of the UK over the past two years, when travel abroad was tricky and, for many months, impossible. Now, while we’re able to go overseas again, news of queues and disruption at airports might make us stay put.
We have a number of clients who own holiday lets and we’ve heard that they’ve been busy with bookings recently. The tax implications of holiday let ownership can be complex. For instance, there are certain allowable expenses including on heating and insurances and we can advise clients on those.
We can also work with clients who are looking for their business to qualify as a Furnished Holiday Let (FHL). For this, the property must be available to let for at least 30 weeks a year and actually be let for 15 weeks. Also, it cannot be let to the same person for more than 31 consecutive days.
If your holiday let meets the criteria to be a FHL, HMRC will potentially allow you additional tax benefits compared with traditional residential landlords. Again, we can talk you through these benefits, as well as VAT implications and what sort of business the holiday let should sit within – sole trader, limited company etc.
Staycation and sunshine means the hospitality sector is also benefitting. If you’re in the pub or restaurant trade, you’ll need an accountant by your side who understands your business.
At Lewis & Co, we’ve been working with hospitality businesses – including restaurants, pubs, independent travel agents, holiday lets and guest houses – for 35 years and we’d love to talk to you about how we can support you.
If you’ve got any questions at all, then please do contact us on 01892 513515 or info@lewisandco.biz