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.