If you have holiday lets as well as a trading business, the VAT flat rate scheme is worth a look. If the holiday lets are subject to VAT because your trading business has breached the VAT threshold, this can be very costly.

Firstly, have a look at the ownership structure of the trade and the holiday lets. Could you change the ownership of one of them? If you are a sole trader, could you take your spouse in as a partner to the trade leaving the holiday lets outside the VAT registration?

If you cannot do something like this you might be able to mitigate the situation using the VAT Flat Rate Scheme. Firstly, you must be eligible to use the VAT Flat Rate Scheme. Then it is all down to what Flat Rate Percentage applies in your situation and this will be dictated by your main business.

Get in touch if you think this may be appropriate for you.