How we sorted a Highland holiday-let business's tax for £8,200 saving
Client K runs holiday cottages and a guest house near Inverness serving the strong Highland tourism trade, with strongly seasonal income. 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 the Scottish income tax position hadn't been considered.
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 made sense given the Scottish tax bands, brought the spouse into a proper structure, and set up a cash-flow plan to smooth the seasonal tax payments.