Yes, letting to friends/family at a commercial rate counts towards your 15 weeks lets that you need for HMRC. If you use the chalet yourself or heavily discount family/friends, then HMRC will not count these weeks towards your 15. I let to a number of friends, but I make it clear that I am running a business and they can't have heavy discounts.
Of course you have some flexibility in discounting, eg to repeat guests or to fill slack weeks, as long as you bear in mind the overall profit aim. When you have time to read through the forum postings you will find discussion on the pros and cons of discounting, and the type of visitor you may or may not attract. But I get the feeling that your business plan is built on easily filling the 15 weeks.
You can decline potential bookings if it suits you. I do this if I have booked our holiday house for myself and the family. You may also come across obvious difficult clients you may not wish to rent to, but be aware of legal obligations on refusing potential clients. The HMRC current rules say 15 weeks are necessary to qualify as a holiday let, so you should be fine if you reach these within the "commercial" restraints.
The difference between HMRC and VA weeks is that the former are actual weeks booked, the latter are potential weeks for booking.
VA rules say that you need to make the holiday let available for 140 days of the year. This leaves you plenty of weeks to enjoy the chalet yourself. My understanding is that their calculation of business rates for a holiday let is partly based on the number of people your property can sleep. In my holiday house I have a king size bedroom, a double, a twin and a single, so my business rates include a calculation for 7 guests. I don't know how sofa beds would fit into VA calculations, but whilst the small business rates discount applies this isn't really an issue for you.
You must have a brilliant business plan to fill your chalet during the off season. I find this really difficult in Cornwall. Any feedback on your successes would be appreciated.
Good luck, Giraffe
Beach chalet to FHL start-up advice - Please
Yes, letting to friends/family at a commercial rate counts towards your 15 weeks lets that you need for HMRC. If you use the chalet yourself or heavily discount family/friends, then HMRC will not count these weeks towards your 15. I let to a number of friends, but I make it clear that I am running a business and they can't have heavy discounts.
Of course you have some flexibility in discounting, eg to repeat guests or to fill slack weeks, as long as you bear in mind the overall profit aim. When you have time to read through the forum postings you will find discussion on the pros and cons of discounting, and the type of visitor you may or may not attract. But I get the feeling that your business plan is built on easily filling the 15 weeks.
You can decline potential bookings if it suits you. I do this if I have booked our holiday house for myself and the family. You may also come across obvious difficult clients you may not wish to rent to, but be aware of legal obligations on refusing potential clients. The HMRC current rules say 15 weeks are necessary to qualify as a holiday let, so you should be fine if you reach these within the "commercial" restraints.
The difference between HMRC and VA weeks is that the former are actual weeks booked, the latter are potential weeks for booking.
VA rules say that you need to make the holiday let available for 140 days of the year. This leaves you plenty of weeks to enjoy the chalet yourself. My understanding is that their calculation of business rates for a holiday let is partly based on the number of people your property can sleep. In my holiday house I have a king size bedroom, a double, a twin and a single, so my business rates include a calculation for 7 guests. I don't know how sofa beds would fit into VA calculations, but whilst the small business rates discount applies this isn't really an issue for you.
You must have a brilliant business plan to fill your chalet during the off season. I find this really difficult in Cornwall. Any feedback on your successes would be appreciated.
Good luck, Giraffe
Of course you have some flexibility in discounting, eg to repeat guests or to fill slack weeks, as long as you bear in mind the overall profit aim. When you have time to read through the forum postings you will find discussion on the pros and cons of discounting, and the type of visitor you may or may not attract. But I get the feeling that your business plan is built on easily filling the 15 weeks.
You can decline potential bookings if it suits you. I do this if I have booked our holiday house for myself and the family. You may also come across obvious difficult clients you may not wish to rent to, but be aware of legal obligations on refusing potential clients. The HMRC current rules say 15 weeks are necessary to qualify as a holiday let, so you should be fine if you reach these within the "commercial" restraints.
The difference between HMRC and VA weeks is that the former are actual weeks booked, the latter are potential weeks for booking.
VA rules say that you need to make the holiday let available for 140 days of the year. This leaves you plenty of weeks to enjoy the chalet yourself. My understanding is that their calculation of business rates for a holiday let is partly based on the number of people your property can sleep. In my holiday house I have a king size bedroom, a double, a twin and a single, so my business rates include a calculation for 7 guests. I don't know how sofa beds would fit into VA calculations, but whilst the small business rates discount applies this isn't really an issue for you.
You must have a brilliant business plan to fill your chalet during the off season. I find this really difficult in Cornwall. Any feedback on your successes would be appreciated.
Good luck, Giraffe
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petethemeat
- Posts: 8
- Joined: Thu Nov 24, 2016 3:22 pm
Hi Giraffe ,
Really useful info and clarification - thank you very much .
Didn't realise you'd replied again at first until I noticed my post now had 2 pages - Doh ! I am VERY new to this . LOL
I'd like to discuss my business plan with you in the near future , I'm sure you could pick some holes in it which will help me greatly of course . Hope to run this by you soon AND let you know how I get on .
Cheers - petethemeat
Really useful info and clarification - thank you very much .
Didn't realise you'd replied again at first until I noticed my post now had 2 pages - Doh ! I am VERY new to this . LOL
I'd like to discuss my business plan with you in the near future , I'm sure you could pick some holes in it which will help me greatly of course . Hope to run this by you soon AND let you know how I get on .
Cheers - petethemeat