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