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.
JF
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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