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Accounts and VAT for small hotels, guest houses and B&Bs, including long stays, deposits and staff who live in.
See your monthly feeAccounts, tax, bookkeeping and VAT returns start from £149 + VAT a month, set by your turnover. Business Pulse starts from £375 + VAT a month.
One guest in a room at £100 a night before VAT, no meals, staying 35 nights without a break. From the 29th night VAT falls on the facilities part only, at least 20% of the charge.
The reduced value runs from the 29th day of each guest's stay, and the stay must be continuous. Meals and drink stay standard-rated in full. VAT Notice 709/3.
VAT is due on a deposit you keep when a guest does not take up the booking. An advance payment cannot be reclassified later as a cancellation charge.
Rooms carry VAT at the standard rate of 20%. If your turnover suits the Flat Rate Scheme, HMRC's percentage for hotel or accommodation is 10.5%.
Accommodation is the only benefit that counts towards minimum wage pay. From April 2026 the accommodation offset is £11.10 a day, or £77.70 a week, and the daily figure rises to £11.53 from April 2027.
A charge for the room reduces pay for minimum wage purposes only where it is more than the offset. Meals provided to staff do not count towards minimum wage pay.
Accommodation offset calculatorYes. VAT Notice 709/3 says that if you keep a deposit for a booking the customer fails to take up, VAT remains due. An advance payment cannot be turned into a cancellation charge afterwards to take it out of VAT.
Yes. The charge reduces a worker's pay for minimum wage purposes only where it is more than the accommodation offset: £11.10 a day, or £77.70 a week, from April 2026. The daily offset rises to £11.53 from April 2027.
HMRC's flat rate percentage for hotel or accommodation is 10.5% of VAT-inclusive turnover. Check the limited cost trader test and the scheme's turnover limits before joining.
It runs for each guest. The reduced value applies from the 29th day of each individual's stay, and the stay has to be continuous.
Buzz Legal and Business Debt Recovery are run by Buzz Legal Ltd (company 17078192). Court work is handled by AD Solicitors, authorised and regulated by the SRA (no. 8011228).
Asks nine questions and lists the employment documents the law requires, which are missing and what each gap costs at a tribunal.
Recovers unpaid business invoices at a fixed fee and adds the statutory interest and compensation to the claim.
Send us your last accounts and a VAT return. We will check your long stays, deposits and staff accommodation and show you what we would change.