Holiday Let
Tilley
Registered Posts: 1
in Bookkeeping
Would a holiday let income be subject to VAT? Should I create a new nominal or use the rental nominal? (the accounting system I use is Sage 50 professional)
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Comments
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Hi @Tilley
If the property is classified as a FHL then yes it is a standard rated supply if the turnover exceeds the VAT threshold. See the following extract from Tax Adviser Magazine:The provision of holiday accommodation is within the scope of VAT. Therefore if the income from the FHL exceeds the VAT threshold the owner must register for VAT. The supply will be standard-rated. Care should be taken if the sole owner of the FHL is also self-employed and making taxable supplies. In this case the turnover from the sole-trade and the FHL must be taken into account in determining whether the VAT threshold has been breached.0
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