HOW TO SET UP A TOURISM BUSINESS
Based on our experience of setting up a tourism business with a HEBHOME, there are a number of issues to consider:
- Utilities. Typically the rental charged should cover the cost of heating, lighting. Securing this for the property, particularly if real fires are used will be required. A SIP house has particular properties which reduces the utility bills and improves its green credentials. See more at GO TO GREEN REVOLUTION.
- TV, telephones and WiFi. Increasingly units are offering broadband and WiFi facilities as well as TV, DVD, music systems. Installing these facilities as part of the build and fit out and meeting their ongoing cost will be required.
- Business Rates. You may be liable to pay Council Tax (or business rates). If you classify the operation as a small business, many councils will charge zero business rates.
Specialised insurance cover for Holiday Home or Self-Catering properties is essential as it includes cover for Public Liability and employees. This is provided by companies such as: www.jlmorris.co.uk; www.schofields.ltd.uk; andwww.towergateinsurance.co.uk
Holiday let businesses are eligible for additional tax reliefs including offsetting operating costs and capital investment against income generated. In order to comply they must be furnished, available for rent at least 140 days in a year; rented for at least 70 days throughout the year and not rented out for more than 31 days to any individual person. There are also specific capital gains tax benefits and the ability to offset losses against other business activities, however these depend on each individual’s circumstances.