Accountants for furnished holiday let owners

Holidays lets continue to be popular and appeal to a broad range of investors. Many are drawn to holiday lets due to the yields and tax advantages compared to buy-to-let, with the added bonus of being able to occasionally use the property.

In-depth, tailored property tax advice

Award-winning property accounting app

Fast, expert support from our accountants

Tax returns and accounts prepared and filed

Accountancy service

A complete holiday let tax accountancy service, from just £49 per month

Our all-inclusive accountancy service has everything you need to manage your holiday let finances, and ensure you remain compliant with your tax obligations.

Tailored tax advice

One-to-one tax consultation phone calls with our property accountants are included, as standard.

Personal support

Your named account manager is just a phone call or email away, whenever you need them.

Tax returns included

Our team of experienced and qualified accountants will prepare and submit your accounts and returns.

Buy or convert

If you're buying to let, or converting an existing property, we're here to help with the tax advice you need.

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Accounting app

Manage your holiday let finances with our innovative accounting app

There's no need to struggle with clunky spreadsheets, or complex software like Xero or QuickBooks.

Our service is built around our award-winning (and easy-to-use) property accounting app. From letting directly to tracking tax, it's the only app you'll need.

Expenses & mileage

Track and reclaim your property and personal expenses.

Bank statement feeds

Connect to your bank, securely, and keep your accounts up to date.

Works with agents

Outsource the heavy lifting, and let our app keep track of agent costs.

Direct lettings

If you also let directly, you can issue invoices and collect card payments from our app.

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Everything you need, for a fixed monthly fee

Our fixed-fee accountancy service includes everything you need to manage your property portfolio's tax, accounts and compliance.

Personal Adviser

For small personally owned portfolios

£49per month

Personal tax returns

Named account manager

Accounting app

4 tax consultations per year

Company Adviser

For small portfolios owned via a limited company

£89per month

Company tax returns

Named account manager

Accounting app

4 tax consultations per year

Growth Adviser

For larger portfolios, or those looking to grow

£149per month

All tax returns

Named accountant

Accounting app

Unlimited tax consultations

Annual tax reviews

Learn more about our accountancy services

Let’s have a chat. Hop onto live chat now or arrange a free call. There’s no pressure and at the very least you’ll have a friendly, impartial chat.

What is a furnished holiday let?

A furnished holiday let (FHL) is a type of short-term rental property which has a statutory definition. The reason it has a statutory definition is important because, if the test is passed, it allows you to access specific elements of the tax system which can be advantageous.

Broadly speaking, the rules state that a FHL must be available to let for 210 days per year (excluding time you spend there), be actually let for at least 105 days per year (excluding lettings to friends/relatives), and no more than 155 days of lettings over 31 days. As a Provestor client, we will assist you in determining the status of your property.

Furnished holiday let tax considerations

If your property is classified as a FHL, you can:

  • Apply mortgage interest relief, meaning you can offset your mortgage interest from your profit

  • Claim 'capital allowances', which means the costs of furnishing/refurbishing the property are tax-deductible

  • Class the profits as earnings, allowing you to make tax-advantaged pension contributions

  • Claim Capital Gains Tax relief when you sell the property

These four tax considerations are not available to conventional buy-to-let properties, meaning FHLs can be an attractive investment from a tax perspective.

If you plan to build a portfolio of FHLs, or have other business interests, you may have to register for VAT and charge this to your guests. The current threshold for VAT registration is £85,000 per year, and VAT on holiday lets is charged at 20%. This may make your holiday let less attractive or less profitable compared to other non-VAT registered holiday lets in your area.