B&B

JJH1969

Has anyone experience of B&B's? I have just taken one on and wondered if there is any HMRC split for food? Also should beds etc be capitalised. The B&B owner also has a farm with lots of expenses but only occassional cow sale and a small amount of RPA subsidy - should all the costs be allowable? How should utilities etc be split if there are no separate meters? She also has horses which she puts down as farm expenses but there is no income attached to them so they are a hobby rather than a trade? So many questions - cant wait to tell her many of her expenses arent allowable! Help please????

T.C.

I do B & B, but as part of a public house (with private residence). The food receipts are kept separate which you could ask your client to do. The utilities should also be split, but you will need to do this sensibly as there will be only a small portion for the B & B.
Horses sound like a hobby - can't see how any expenses relating to them could be classed as business use, unless they give riding lessons or something similar.
Good luck.