What are Furnished Holiday Lettings (FHL)
Accountant for Furnished Holiday Lettings
According to the UK Government, if you allow your furnished holiday let property to be used as holiday accommodation commercially for a minimum of 105 days in a year, your property will be qualified as a Furnished Holiday Let (FHL). However, you must not count the days when your property is used by you, your friends or relatives at zero or minimal rates. There are also some other criteria that your property must meet to qualify as an FHL.
As the rental income from such properties is taxed, you will need an expert holiday let accountant who can help you to minimize the tax exposure. However, here is the catch! There are several tax benefits that you can get if your property gets qualified for an FHL. These benefits can get lost for a tax year if you are not aware of maintaining the availability condition and occupancy pattern. Our expert accountants at CoreAdviz have years of experience in helping FHL owners. We will make sure that your property will always maintain the FHL status.
Tax Assistance for Furnished Holiday Lettings
Be it organizing the bookings or ensuring thorough property maintenance, FHL owners seldom have time to navigate the tax complexities. This can prove extremely challenging for those who have just started their holiday let business. Moreover, frequent tax changes made things worse and handling the tax issues became almost impossible! However, you need to relax as our skilled furnished holiday lets accountants offer valuable tax assistance. We will ensure that your financial records are set straight and assist you so that you can enhance your profits through your FHL property. Believe us, running a holiday let business can prove financially rewarding!
Accounting for FHL Owners
Do you know that as an FHL owner, you can increase your rental income by adding a few facilities like a hot bathtub or Wi-Fi? Yes, there are many ways that you can know from our accountants, and one among these is by reducing the tax liability. So, whether it is claiming your FHL expense allowances or capital gains tax relief or suggesting whether to register for VAT or not, our accountants at CoreAdviz do everything. With our knowledge and experience, we can help you to focus more on your FHL business.
Our Guidance on the “To do list”
As accounting consultants for FHL, we would suggest you with the following
Consider Insurance Needs
Having adequate insurance coverage is of utmost importance. Your coverage must include public liability insurance, insurance against theft, contents insurance, and more to protect you and your property from any potential risks.
Stay Updated On Regulations
Keep a tab on the changes in laws or regulations, especially taxes impacting FHL. Staying up-to-date with planning laws and the requirements of the local government may help in avoiding penalties.
Keep Your Tax Records Handy
Tax invoices and receipts of the last 5 years are required to be preserved. In case the HMRC wants to verify data, they will ask for previous receipts.
Review Pricing Strategy
Regularly review and adjust your pricing strategy based on demand, seasonality, and competitor rates. Switching to dynamic pricing will help you in optimizing your revenue throughout the year
Ready to Optimize Your Business Finances?
Get in touch with our team today to discuss how CoreAdviz can help your business thrive financially.
