How we sorted a Blackpool guest house's tax for £7,800 saving
Client K runs a guest house and holiday flats in Blackpool, with strongly seasonal income peaking over summer and the illuminations. The business was run as a sole trader, the holiday-let treatment hadn't been reviewed since the Furnished Holiday Let rules changed, the seasonal cash flow caused tax-payment stress, and there was no structure for the spouse who worked full-time in the business.
We reviewed everything in light of the abolition of the Furnished Holiday Let regime from April 2025, the lettings now fall under the standard property rules, so we re-based the treatment, captured all the legitimate running costs, modelled whether incorporating the business made sense, brought the spouse into a proper structure, and set up a cash-flow plan to smooth the seasonal tax payments.