Mobile Home Business - Where to start?

Peppa_Pig_5

Not sure where to start really, bit daunted by it all. I have a mobile home and have just started to let it out over the summer hols to cover the ground rent. We also use it for our holidays. However, I would like to use it to make an income. I work part time and earn over the £5000 ish, so I do pay tax, but not a huge amount. I know I have to contact the tax office to let them know within 3 months, but its the self assessment etc. that I find scary.

Are the forms easy enough for me to do myself or would I have to get an accountant. Also I was hoping to use a cleaning company in the area, so would I have to class them as an employee and pay tax and nat ins for them, or is that something I leave for the cleaning company to sort out.

Do I have to give this business a name and register it with Companies House? Any advice on where I could start would be much appreciated. Thanks Peppa

Savvy_Sue

I can answer the question about the cleaning company: if you're using a company THEY will pay their employees, and you will pay the company a small (or not so small) premium to cover the expenses involved in employing staff. But you will not have to find a relief cleaner if one of theirs is ill, or if the person who usually does it decides to leave etc etc etc.

If you employ a cleaner direct, then you would PROBABLY be able to do it on the basis that they were self-employed, especially if they were cleaning for other people as well. Then you'd pay them gross and they'd sort out their own tax. But you might struggle to find someone willing to clean just on an 'as and when needed' basis. And if they weren't available, you'd have to find someone else in a hurry.

Either way the expenses of paying for cleaning would be a deductible expense from your income (although possibly not for any weeks when you stay there, although you might not have the cleaner in then). I don't know what else would be deductible, this could be quite complicated so an accountant might well save you money in the long run, but I'd make sure it was someone who understood about income from letting property rather than other sorts of business.

You might find BusinessLink useful - not sure.

Peppa_Pig_5

Thanks Savvy_Sue, your info is really helpful. I thought a cleaning company would be better as they would not expect work every week, only when I need them. Whereas if I employ a cleaner and lettings are not so good then there wouldn't be as much work and it may put cleaners off. Definitely cheaper than me travelling there every week anyway.

Does anyone have an average rate that I can expect to pay an accountant?

Thanks

seven-day-weekend

The self-assessment form is quite easy; although I have never done one for a holiday rental, I have done one for a residential rental property. You will get, if I recall correctly, the basic tax return and also employed and rental pages. there is a good guide to go with it to help you to fill it in; also the tax advice helpline themselves are very helpful. Fill it in before the deadline (I think it's in September) and they will calculate any tax owing for you.

You don't have to register at Companies' House or have a name for your business.

Peppa_Pig_5

Thanks seven-day-weekend, your info was really helpful. I am really looking forward to this now, in the process of looking for cleaners, which is a big hurdle for me.

If anyone has any more advice it would be much appreciated.:beer:

spraggy_3

We have just included a new motor home as part of our business.

The income you generate is taxable (obviously!). However, you can offset a number of things against it. For example, you should be able to depreciate the motorhome over a number of years and that goes as a cost.

Any fees paid to a mangement company are also tax deductable.

If you supply the motor home "furnished" (plates bowls etc) any breakages are claimed back as a cost.

If you have a loan, any interest is also tax deductable.

If you use a room at home as an office for this business (partially or wholey) you can claim for heat and light.

The guys in the tax office are superb and will talk you through everything in plain English. Just give them a call and don't be daunted by it all. :beer:

Savvy_Sue

spraggy_3 wrote: »

If you use a room at home as an office for this business (partially or wholey) you can claim for heat and light.

Be aware that if you use a room WHOLLY for business, then it is possible that there will be a Capital Gains Tax liability when you sell the house. One way round this is to make sure it's not WHOLLY for business, eg maybe do your ironing in there, or have a bedsettee or whatever so it's also the spare room.

barrymung

Ask other 'van owners who they use for cleaning. They may know of someone who already cleans other 'vans. Alternatively, there may be someone retired living on site who would do the cleaning for you and keep an eye on the 'van for the price of a few beers.

Ask around.