Accountants for furnished holiday let owners
Holidays lets continue to be popular and appeal to a broad range of investors. Many are drawn to holiday lets due to the yields and tax advantages compared to buy-to-let, with the added bonus of being able to occasionally use the property.
In-depth, tailored property tax advice
Award-winning property accounting app
Fast, expert support from our accountants
Tax returns and accounts prepared and filed
A complete holiday let tax accountancy service, from just £59 per month
Our all-inclusive accountancy service has everything you need to manage your holiday let finances, and ensure you remain compliant with your tax obligations.
Tailored tax advice
One-to-one tax consultation phone calls with our property accountants are included, as standard.
Personal support
Your named account manager is just a phone call or email away, whenever you need them.
Tax returns included
Our team of experienced and qualified accountants will prepare and submit your accounts and returns.
Buy or convert
If you're buying to let, or converting an existing property, we're here to help with the tax advice you need.
Manage your holiday let finances with our innovative accounting app
There's no need to struggle with clunky spreadsheets, or complex software like Xero or QuickBooks.
Our service is built around our award-winning (and easy-to-use) property accounting app. From letting directly to tracking tax, it's the only app you'll need.
Expenses & mileage
Track and reclaim your property and personal expenses.
Bank statement feeds
Connect to your bank, securely, and keep your accounts up to date.
Works with agents
Outsource the heavy lifting, and let our app keep track of agent costs.
Direct lettings
If you also let directly, you can issue invoices and collect card payments from our app.
Everything you need, for a fixed monthly fee
Our fixed-fee accountancy service includes everything you need to manage your property portfolio's tax, accounts and compliance.
Personal Adviser
For small personally owned portfolios
Your personal tax return
Named account manager
Online accounting app
4 tax consultations per year
Company Adviser
For small portfolios owned via a limited company
Company tax returns
Named account manager
Online accounting app
4 tax consultations per year
Growth Adviser
For larger portfolios, or those looking to grow
All tax returns
Named accountant
Online accounting app
Unlimited tax consultations
Annual tax reviews
Interested in Provestor? Let's have a chat!
If you've got unanswered questions, chat with one of our friendly team members today.
We'll talk through your goals, make sure we're the right fit, and help you onto the next stage of your property journey, stress-free.
What is a furnished holiday let?
A furnished holiday let (FHL) is a type of short-term rental property which has a statutory definition. The reason it has a statutory definition is important because, if the test is passed, it allows you to access specific elements of the tax system which can be advantageous.
Broadly speaking, the rules state that a FHL must be available to let for 210 days per year (excluding time you spend there), be actually let for at least 105 days per year (excluding lettings to friends/relatives), and no more than 155 days of lettings over 31 days. As a Provestor client, we will assist you in determining the status of your property.
Furnished holiday let tax considerations
If your property is classified as a FHL, you can:
Apply mortgage interest relief, meaning you can offset your mortgage interest from your profit
Claim 'capital allowances', which means the costs of furnishing/refurbishing the property are tax-deductible
Class the profits as earnings, allowing you to make tax-advantaged pension contributions
Claim Capital Gains Tax relief when you sell the property
These four tax considerations are not available to conventional buy-to-let properties, meaning FHLs can be an attractive investment from a tax perspective.
If you plan to build a portfolio of FHLs, or have other business interests, you may have to register for VAT and charge this to your guests. The current threshold for VAT registration is £85,000 per year, and VAT on holiday lets is charged at 20%. This may make your holiday let less attractive or less profitable compared to other non-VAT registered holiday lets in your area.