Southwest Caravan Holidays
Accountancy & tax consultancy
Allen Business Sevices, who run this site, have been trading as tax advisors and general business consultants since 1978, and the proprietor, Dave Allen, is a keen caravanner himself.
Provided a caravan holiday home letting business satisfies the current tax legislation there are numerous very attractive but not well publicised tax benefits available, over and above those available to other types of holiday home lettings. To be classed as a "business with earned income" within current legislation and reap all the tax benefits, the caravan holiday home has to meet, amongst others, the following requirements:
1. Be furnished and sited in the UK on a designated holiday park ( not a residential park)
2. Be available for commercial letting to the public for at least 140 days in a twelve month period and be let at a commercial rent for at least 70 days
3. Not have permanent foundations, ie should be chassis/wheel mounted
4. It must not normally be occupied by the same person for more than 31 consecutive days
If the home meets the above requirements and the owner also has other taxed income as an employee, pensioner or self employment any loss from the letting business can be offset against other income and potentially massive tax rebates obtained. Legislation up to 2007/08 allowed for a 50% allowance of the purchase price in the first year. For example if you buy a caravan for, say, £30,000 and meet the above requirements you can earn an extra £15000 from your normal job without paying tax!( via a tax rebate application) -and that's before all the other deductions allowable such as interest, insurance, gas, electricity, site fees etc.- And you still get to use the home for your own private holidays.
Timber lodges may even qualify- some cost £150000-that means £75000 tax free income at, say, 40% tax rate= a tax rebate potential of £30000!
Current legislation , ie 2008/09 onwards can be even more beneficial.
If you feel you might be able to qualify why not take advantage of our special tax/accounting services. For just £245 per home per tax year we will guide you through the record keeping required, compile your accounts/tax return as they relate to your letting business. We can even set up and advise about online marketing of your letting business for those not familiar with the internet.
We already advise many other landlords and different types of businesses but this page is aimed at those wishing to benefit big time from running a caravan letting business-but do not hesitate to contact us if you need to seek an accountant for another type of business.
We can be contacted via the contact page,
WE WILL UPDATE THIS PAGE AS SOON AS PROPOSED CHANGES HAVE BEEN FINALISED BY THE NEW COALITION GOVERNMENT- BUT THE NEWS IS NOT LIKELY TO BE GOOD FOR MANY BUSINESSES!
