Tax

Understanding the legalities involved and knowing what type of holiday let business you qualify as is your first step. If your holiday property is available to guests for short rental periods over 30 weeks or more in a year, it is classified as a business and will need to be registered for business rates. 

As with any business, it is compulsory to keep accurate documentation and accounts that record income and expenditure for tax purposes. You must declare all earnings from your holiday let business when filing your annual return to HMRC.

Understanding the tax rules and allowances is important to ensure your finances are all correct and that you are legally compliant with the government tax system.

Using the services of a professional accountant or bookkeeper to manage your finances ensures that you are paying the correct tax as well as making the most of the allowances that the government provides.

Holiday let building and contents cover

Holiday let insurance is there to protect you and your holiday let, so it is vital to know what it should cover and that you have the right policy in place. Your holiday cottage should have adequate building and contents insurance. This is to cover against damage, accidents, and loss of earnings.

Public liability insurance for holiday lets

Public liability insurance for a holiday letting business is essential. Without it, you could potentially be exposing yourself legally and financially if your guests are injured. Here at Keys Holiday Cottages we recommend at least £5 million public liability insurance is in place.