UK Tax Question

First post. Haven’t started hosting in London yet, but I have a LTD company that I’ve only just started this year for potential consultancy opportunities. (Haven’t billed a dime yet, ha!). Anyway, I’m wondering if it’s better to host and file tax under the LTD company, or just file a Self Assessment? Are there any benefits to doing business under the LTD company? Expense write offs, etc? I’m also fairly new to the UK tax system as a business. Thanks!

In that case speak to an accountant. I would suspect that the majority of non professional hosts simply use SA, but given the (financial) ramifications if you get it wrong, a few quid spent having a chat with someone who can look at your overall situation and provide the correct advice will be money well spent.



We do, largely because of the way our cottages purchase was financed.
If you don’t live in the property, and your property is available to let for more than 140 nights a year, you are operating as a business and will have to pay rates. It would then make sense to establish a limited company for the reason you mentioned. Remuneration can then be through dividends, PAYE, or a combination of both. (Side note: if you were paid through PAYE before March you would have been able to claim furlough.)
I would strongly recommend discussing your options with an account, an hour’s consultancy may save you a lot of money and is of course an allowable business expense in any case.

To be honest if you receive payment for a product or service which is what ruining an STR is - you are running a business @WyeView

It doesn’t matter how many days you let out for or whether self-contained

This is true. I think maybe the ‘140 nights’ thing renders you liable for business rates instead of council tax. Anything over 140 nights means you’re running a holiday let