Serviced Accommodation Success and Tax – Get It Right and Get Ahead

Register your interest in Serviced Accommodation Discovery Day here, and a member of our team will get back to you to confirm your place at your preferred date.     Kevin shares an extract from his much-anticipated book ‘Serviced Accommodation Success’ which is due for launch imminently. He has chosen a section packed with information about tax and Serviced Accommodation, an area that is known for its mis-information and confusion. This is a chance to find out about what really matters and what is actually applicable to serviced accommodation from someone who has extensive expertise and experience in this sector. Listen in and learn.   KEY TAKEAWAYS There is never a definitive course of action for tax as only a slight variance in circumstance can alter the actions required. Always seek guidance from an experienced SA accountant and refer to HMRC SA is more like a hotel, guest house or B&B because of the other services available such as laundry and cleaning. To qualify as FHL a property should be available for short term lettings for 210 days in a year and let for 105 days of short lets. Income from SA is subject to VAT but income from buy to let and HMO is not and when the threshold is met VAT is chargeable to customers and payable to HMRC. There are different VAT schemes that are applicable so it’s vital that professional advice is sought. Section 24 legislation dictates that buy to let and HMO owners would no longer be able to offset their mortgage interest against rental income and tax. In SA mortgage interest can still be offset against SA income subject to meeting the FHL or serviced accommodation criteria, so there is no need to purchase SA property through a limited company to avoid section 24 tax. Many SA operators begin their SA journey by renting out part of their own home first and the rent a room allowance is currently £7,500 allowing you to use part of your own home as SA up to the allowance tax-free.   BEST MOMENTS ‘Many people use the term serviced accommodation when referring to a holiday let as well as SA’ ‘Tax is an area that is often confusing’ ‘Many SA operators begin their SA journey by renting out part of their own home first’   VALUABLE RESOURCES The Serviced Accommodation Property Podcast https://propertysoldier.co.uk/ https://www.gov.uk/…/guida…/covid-19-support-for-businesses…   ABOUT THE HOST Your host Kevin Poneskis enjoys public speaking, travelling, exercising and keeping fit. He also enjoys working with a charity called STOLL which provides accommodation and training for homeless veterans.   Kevin was in the British Army serving 24 years, mostly in a Commando unit and retired at the rank of Regimental Sergeant Major. He left the Army in 2011 and became a full-time property investor. During most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years.   CONTACT METHOD https://en-gb.facebook.com/propertysoldier/ [email protected]