What is serviced accommodation?
It’s generally accepted that serviced accommodation provides a high quality alternative to hotels for business or leisure purposes. They may be a midweek home for travelling business consultants, a weekend base for tourists (perhaps let via Airbnb), or accomodation for those visiting family away from their local area.
Serviced accommodation tax considerations
The majority of serviced accommodation investors are keen to ensure their property is classified as a furnished holiday let (FHL), for tax purposes. By doing so, certain tax advantages can be realised - you can read more here.
Compared to conventional buy to let, the outgoings for serviced accommodation are much higher. For example, there may be service costs for shared facilities, regular cleaning costs and fees paid to booking marketplaces and management firms. The majority of outgoings can be deducted from your profits, thus reducing your tax liability.
Our accountancy service
How we help serviced accommodation investors
If you’re looking to invest in serviced accommodation our accountants can help you to understand the different ownership and operating models, to ensure you’re starting on the firmest possible tax footing.
Our award-winning property accounting app simplifies the day to day operation of your finances, and makes it easy to track and claim any outgoings or expenses related to your property. Should you need any help, your dedicated account manager is available by phone and email to answer your queries.
You’ll also have ongoing support from our experienced property accountants. We will ensure that you are taking full advantage of available tax reliefs, as well as handling your tax compliance, including preparing and submitting VAT returns if required.
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