B and B (guest House) plus self catering accom. One company or two?

Seanymph

We are looking to buy a business - a b and b or guest house... Several we have looked at also have self catering accomodation as part of the 'complex' or building - albeit with seperate external access.

Some we have looked at deliberately trade under VAT, closing for several months a year.

Is there any mileage in running a B and B - plus a holiday self catering company - to split the income across both? And how would that happen?

Limited holiday lettings company, partnership running the b and b?

Or is it just too obvious and could never be set up in a way that the revenue would wear it?

Pennywise

Google HMRC VAT disaggregation to see how HMRC view artificial separation of a business and what they do about it. Once you understand how they think, you can see whether you can plan how they operate so the anti-avoidance rules aren't triggered.

Eg, HMRC wouldn't want to see you advertising both properties on the same website or listing as you have to operate them as completely separate businesses, so have to minimise "joint" affairs.

Re limited companies, be wary if you plan to live in the property that you buy through the company, i.e. if you live in part of the B&B, as you'll have to pay benefit in kind tax on your living accommodation.

Seanymph

Thanks Pennywise, my thought - and prior to accountancy advice so it was me personally - was that we would buy the property in its entirety. Live in the owners accomodation and run the b and b.

But set up a limited holiday let company to manage the self catering annex (plus maybe other self catering if I have time/we buy more/I could find clients...) I thought it would wear better if the structure was set up at the very beginning rather than as the takings reached 80k.

It's loose because I haven't taken any advice, I just wondered if there was any mileage in exploring it.