The information in this site is of a general nature and is not a substitute for professional advice. You are recommended to obtain specific professional advice before you take any action.
Furnished Holiday Letting’s
DHC Accounting provides a specialist service for Furnished Holiday Letting (FHL) Owners which basically comprises a comprehensive accounting and tax service (by way of post, email, telephone, fax and on a personal level) on a fixed fee basis.
We are very proud to have been partners with Hoseasons Group for many years and can access our joint 2011 taxation information summary by following this link: FHL Taxation_Leaflet
The fees that we charge are in accordance with the menu of prices on the registration form. Obviously, there are some special cases where there may be particular complications (For example an Inland Revenue Investigation) or perhaps more than one year's work to do and in these cases we will always discuss the fees with you before we commence work.
Often, we are asked by clients to provide accountancy and tax services for other businesses in which they may be involved and we are always happy to undertake this work and guarantee a fixed fee in advance.
Current Fee Structure
Wherever we can, we will try to add value to our service and help you keep more of what you earn.
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One year Cottage Accounts and Tax Calculations (standard land and property schedule only) |
£420.00 |
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Additional fee per extra cottage |
£60.00 |
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Each extra tax return to complete (e.g. Self and/or Spouse) |
£120.00 |
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Fees include VAT @ 20% and are fully tax deductable | |
The answer is very simple - you just complete the registration form on the web site. In the first instance, you might like to telephone to discuss specific matters. If appropriate you can print the registration form and post it along with your accounting information.
Proposed changes to tax registration may mean that FHL losses cannot be used to obtain tax refunds however, there are still opportunities to save considerable amounts of tax with careful planning - You should always take professional advice before undertaking any tax planning m,measures.
As cottage owners, you are bound to make a return of income and expenses for your cottages, together with all other information relative to your tax return and this needs to be submitted by 31 January following the end of the previous tax year.
Once the Inland Revenue receive your returns, they have a full year after 31 January deadline to enquire into any aspect of the return they so wish
In our experience, detailed enquires into ordinary traders returns have been few in number, but that those actually investigated have been extremely detailed and time consuming. On the other hand, enquiries into holiday let cases tended to be rather less detailed. Don't be fooled though! - the taxman has stated the number of enquiries will increase substantially next year so the chances of you being subject to a random detailed enquiry at some stage is on the increase as this tends to raise income for HM Government Coffers! Nevertheless, it is imperative that you as individuals are ready for any enquiry that may be made into your tax return.
- Your holiday letting accounts will be prepared to 5 April each year and the information that we would like to receive from you would comprise: Your monthly statements from the Holiday Cottages Group which will give us details of the income and also if you have any private letting's, you need to tell us the amounts that you received.
- Details of all expenditure associated with the property; we do not necessarily need you to send us all of the receipts and bills if the information that you are providing is detailed enough.
- Details of your mortgage and mortgage statements if you have one.
A brief history of the property.
To see a summary of the type of expenditure that can be claimed, please follow this link: FHL Expenditure
Within 5 weeks (and usually much sooner than that), assuming that you have provided us with all the information we require, we will prepare the financial accounts for the holiday cottage together with tax computations and the land and property schedule to attach to your self assessment tax return form and the return itself if you have requested it.
Taxation of Furnished Holiday Letting
The letting of furnished holiday accommodation is treated as a trade for most UK tax purposes and we have a comprehensive guide which you can access by following this link: FHL Report
BUDGET 2011
Since the pre budget report proposed by the Labour Government in 2009, the tax treatment of Furnished Holiday Letting businesses has been under review.
The Emergency Budget on 22 June 2010 announced that Furnished Holiday Letting’s in the UK and EEA would continue to be taxed under the same legislation that has been in place since 1984 at least up to 5 April 2011. Following a period of consultation, H M Treasury announced proposed changes to the legislation which will now be enacted in the 2011
Finance bill.
This guide sets out the current position for accounting periods ending on 05 April 2011 and also the changes that will come into effect from the 6 April 2011.
Each year millions of holiday makers choose the Hoseasons Group for self catering accommodation and short breaks.
They offer unparalleled access to over 40,000 properties across the UK and Europe.
