B & Bs from a definition of ISPs , or to find a low-cost and practical way that such “ ISPs ” cannot be unfairly held responsible for something they have no control over .
Insurance
When you open up as a B & B , you need to change your insurance from a standard ‘ household ’ type policy to a specialist B & B or guest house insurance policy . There are a number of specialist insurers providing these policies , which give the usual family household and buildings cover , and also additional cover for your public liability ( eg for injury to paying guests ), and even for ( optionally ) theft or malicious damage by paying guests . Prices can vary hugely – on joining the Bed & Breakfast Association , B & B owners have reported savings of £ 400 , £ 850 and even £ 1,400 in premium , simply by checking the options the Association gives to its members .
So our advice is do your homework , and shop around – get lots of quotes , and ask lots of questions !
Looking back at this section of the book , we are almost tempted to apologise for the lengthy discussions of regulations and red tape – but after all , you need to know it all , good and bad . We would not be doing our job if we left out the problems , challenges and threats . Try not to be discouraged – in practice , most are not quite as bad as they may seem !
Accounting and tax You must consider this right from the very outset , to avoid costly headaches later . Taking into account your personal financial circumstances and your business aims , we explain the pros and cons of running your business as a sole trader vs a limited company , the financial disciplines you will need to follow , and the most important things you need to know about accounting and tax as far as running a B & B is concerned .
Accounting and tax are of course closely related areas , and both are “ musts ” – you must produce accounts , even if only for your benefit , and of course you must pay tax . Having said that , there are different ways you can account and pay tax on a small B & B business .
Accounts – who needs them ? If you have not run a business before , the thought of producing sets of “ accounts ” may well be daunting . Aren ’ t there ways you can run a B & B without accounts ? Well , yes – sort of . For a very small operation , the “ rent a room ” scheme allows a simplified way of paying tax without the Inland Revenue needing to see any accounts . BUT – and it ’ s a big “ but ” – you shouldn ’ t be looking at ways to avoid doing any accounts . We say this not for the sake of the taxman or the accountancy profession , but for YOUR sake as a business owner . Don ’ t be scared of accounts – you need them !
How to Start & Run a B & B www . howtorunabandb . com