Furnished Holiday Lettings
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 2012 taxation information summary by following this link: FHL Taxation_Leaflet.
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.
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.
FURNISHED HOLIDAY LETTING AND BUSINESS STATUS
Whilst the 2011 budget introduced changes to the tax legislation applying to Furnished Holiday Letting Businesses, those that meet the specified criteria will continue to be treated as businesses for Income Tax purposes and be treated as business property for
Capital Taxes purposes, which ensures that they continue to benefit from valuable tax reliefs not available with other types of property letting.
The information set out in this leaflet applies to both UK FHL businesses and to those set up in other countries within the European Economic Area.
- 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.
Income Tax Returns
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.
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.
Changes to tax legislation 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 measures.
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
|One year Cottage Accounts and Tax Calculations
(standard land and property schedule only)
|Additional fee per extra cottage||£60.00|
|Each extra tax return to complete (e.g. Self and/or Spouse)||£126.00|
|Fees include VAT @ 20% and are fully tax deductible|