Tax!!

[HPD]

Hello,

So looking at buying a holiday chalet cash.

Will not make more than a few thousand per year profit.
We have been told we don't need to pay business rates.

What are the tax rules? We are finding it really confusing and difficult to get clarification and how much we will get taxed.

Any advice thanks

[Jenster]

Hi HPD

I bought a small place in Dec 2015. I applied for business rates and for small business rate relief. This I believe is calculated on the 'rateable value' of your holiday let, which you can look up on the HMRC website. For small places, I think the small business rate relief is usually 100%, so you don't pay anything (at least we don't) .

You will of course need to do a tax return and pay tax on any profits above your yearly allowance.

hope this helps
Jenny

[Nemo]

Not sure who would tell you you don't "need" to pay business rates? Council tax is usually more to pay, especially as business rates relief currently applies.

There's loads of info on here if you have a mooch around. Furnished Holiday Letting is what you want to look for.

https://www.gov.uk/guidance/income-tax- ... tal-income

https://www.gov.uk/government/publicati ... sheet/cvgg

https://www.gov.uk/introduction-to-busi ... s/overview

https://www.gov.uk/apply-for-business-r ... f/overview

Income is treated as income from property so you will need to fill in that section on a self assessment form.