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SPECIALIST ACCOUNTANTS
FOR THE PROPERTY INDUSTRY & SERVICED ACCOMMODATION PROVIDERS

Onyx accounting professionals can help you accomplish important accounting functions and support your serviced accommodation business

Get in touch with us for a FREE no obligation consultation

Experts in the Property and 'rent to rent' Serviced Accommodation industry

Onyx are specialists in providing accounting and financial services for businesses in the Property and Serviced Accommodation Industry.

Whether you are property developer, an estate agent or a private individual with a rental portfolio, we have a range of tailored support solutions to suit you.

If you are within the Rent to Rent sector, you own your own units, or you are in Serviced Accommodation Management we have the expertise to ensure you and your operation runs in the most tax efficient manner whilst covered from exposure.

There is a variety of  different company structures we we can set in place depending on your circumstances and at what stage of your SA business journey you are on.

Whether you are starting from scratch or are already established we have the expertise to help you plan and scale your portfolio whilst ensuring you are complying with HMRC regulations and reporting requirements every step of the way.

Property Investment

Property Industry - Pain Points

Long and Short Term Investment Property Structure

If you are looking to have long term property investments generating rental income along side shorter term ‘flip’ properties, our 2 company group structure is the perfect fit for you.

Both of these company types can work perfectly well on their own, however bringing them into a structure can give you more freedom and flexibility to move profits and grow your investments in a tax efficient way. 

Holding Co

Holding Co - Where monies can be transferred up from the Short Term Investment Co to create wealth in Holding Co to re-invest in purchasing long term investment property. Equally money can be transferred down into the Short Term Investment co or other companies sat below the Holding Co.
Click Here for Detailed Holding Co Description
A 'holding company' is typically used for when a client wants to build personal wealth and usually sits at the head of the structure. In this instance the wealth generated is usually used by the client to purchase their own properties out right. Profits from a company or companies sat below a holding company can be transferred up into the holding co without incurring any tax liabilities. This is especially useful if you have a business partner(s) and you would like to take money out of a trading company you own together without incurring tax liabilities. Another instance would be if you would like to make other investments outside of the trading company the profits were made in to limit exposure to your new investments. Equally you can pay money downwards from the Holding Co into any of the businesses below. Multiple businesses can sit under a holding company and it doesn't have to be related to this current property structure.

Short Term Investment Co

For the purchase of property with short-term ownership plans such as renovations for profit.
Click Here for Detailed Investment Co Description
An 'Investment Company' may be created for clients intending to purchase property they only keep for a short period of time and then sell on to make a profit, such as renovating and flipping properties. Any properties that are bought to flip will be purchased through here and also sold through this company. Any gains and losses recognised in this company. This company will sit below the holding co allowing for profits to be transferred up into the holding co without incurring any tax liabilities.

Serviced Accommodation and Rent to Rent

pain points (13)

Basic Serviced Accommodation Company Structure

Our company structures are usually made up of a combination of 5 company types. Not every structure will need all 5 companies and some may be introduced at different points of your business growth.

Holding Co

Holding Co - Where monies can be transferred up from the SA Co to create wealth in Holding Co to re-invest in purchasing property. Equally money can be transferred down into the SA Co or other companies sat below the Holding Co.
Click Here for Detailed Holding Co Description
A 'holding company' is typically used for when a client wants to build personal wealth and usually sits at the head of the structure. In this instance the wealth generated is usually used by the client to purchase their own properties out right. Profits from a company or companies sat below a holding company can be transferred up into the holding co without incurring any tax liabilities. This is especially useful if you have a business partner(s) and you would like to take money out of a trading company you own together without incurring tax liabilities. Another instance would be if you would like to make other investments outside of the trading company the profits were made in to limit exposure to your new investments. Equally you can pay money downwards from the Holding Co into any of the businesses below. Multiple businesses can sit under a holding company and it doesn't have to be related to this current property structure.

Serviced Accommodation Trading Co

All Booking Revenue and SA costs will be traded through this company This company will have VAT (when applicable) and PAYE. All utility and accommodation costs incurred for servicing book revenue will be accounted for here.
Click Here for Detailed SA Co Description
A 'Serviced Accommodation Trading Company's' purpose is to hold the 'trading activity' of the business. It sits in the middle of the holding co and the lease co. This company is where your booking revenue would come into and all of your over heads such as management fee's, cleaning fee's and rent would come out of. If you are in the rent-to-rent sector this company would re-rent the property off the lease co below where the inital rental agreement where with the landlord is held. This method protects profits made in this company should anything go wrong with a rental agreement or landlord disagreements.

Lease Co

Simple Lease Holding Companies where leases with Landlords are held and they sublet to SA Trading Co. Multiple lease co's may be created if there is more than one Landlord with multiple units. This company is only required when you personally are signing a lease agreement with a landlord.
Click Here for Detailed Lease Co Description
A 'Lease Company' is put in place purely to hold the rental agreement between the client and the landlord and sits underneath the SA Trading Co. We typically suggest to create a new lease co per landlord, so if you have multiple units with one landlord, one lease co should suffice. Should an issue occur with one lease, holding all leases in one company could leave your other leases exposed. Having multiple lease companies will protect each individual lease, and you may also benefit from business rates relief per lease company. Sometimes if your units come via a management company, they may already have the lease in place, therefore you will not require a Lease Co

Other companies that can be included in the structure

Our more complex structure offering can include an Investment Company for more short term property investment, and a Management company for those who look to manage units on behalf of other property owners/lease holders.

Management Co

This company will charge property owners / lease holders a management fee to manage their units on their behalf.
Click Here for Detailed Management Co Description
A 'Serviced Accommodation Management Company' is for clients who manage other individuals units on their behalf for a fee meaning it will not be applicable to everyone. This company will sit below the holding co allowing for profits to be transferred up into the holding co without incurring any tax liabilities.

Investment Co

For the purchase of property with short-term ownership plans such as renovations for profit.
Click Here for Detailed Investment Co Description
An 'Investment Company' may be created for clients intending to purchase property they only keep for a short period of time and then sell on to make a profit, such as renovating and flipping properties, meaning it will not be applicable to everyone. Any properties that are bought to flip will be purchased through here and also sold through this company. Any gains and losses recognised in this company. This company will sit below the holding co allowing for profits to be transferred up into the holding co without incurring any tax liabilities.

If you are interested in setting up a company structure with us or would like to hear more information please complete an initial enquiry form and a member of the team will be in contact.

Why choose Onyx?

Trust and Availability

We understand working in the property or serviced accommodation industry can have its pressures. At Onyx you can be sound in the knowledge that you have a dedicated team to cater to your every need. Each Onyx team is headed up by a qualified accountant and they are supported by a Client Manager and an Accounts Assistant. This allows you to have peace of mind that your work will be completed accurately and on time.

Statutory Compliance

Finding a property or serviced accommodation accountant that understands your specific compliance needs is very important. We can help you by making sure accounts are prepared in the correct format, statutory books and other company secretarial records are kept up-to-date and that all statutory returns are prepared. We will ensure that VAT compliance, HMRC and national insurance registration, and appropriate tax returns are correctly filed. Our experienced team will relieve you of the regulatory burden giving you more time to concentrate on your core business. For more info please visit our Compliance Services page.

Budgeting and Reporting

Onyx can provide monthly or quarterly reporting packages tailored to your business which will allow you to better measure your profit margins and losses at that specific point in time which will give you a higher level of financial control and understanding of the long-term cash needs of the business.

These reporting methods will give you the confidence to invest in any new growth plans such taking on new units or the purchase of property, and will also avoid any hidden scares at the end of the year.

Payroll Services

Payroll Services – Running a payroll can be time consuming, complicated and divert resources from the core activities of your business. 

We ensure that the regulations set out by HMRC are being complied with whilst maximizing tax saving opportunities. We offer cost-effective solutions and provide an end-to-end payroll service, whatever the size or complexity of your business.

For more info please visit our dedicated Payroll Bureau Services page.

Tax Planning

 No matter the size of your business we will help you to understand the tax implications of your actions, therefore you can plan ahead and conduct your affairs in a tax efficient way. We will ensure you are making the most of any tax saving opportunities such as Capital Allowance claims, Research and Development tax credits, and also grant funding.

We can also look into your personal investment portfolio’s which will naturally come with tax implications and ensure you fully understand every aspect and again. As a result we can see where savings can be made.

Interested to read about how we have helped a client of ours with a Research and Development claim? Please read more here.

Bookkeeping and Software

Ensuring you are following the correct bookkeeping practices will have a huge positive impact on your business. Having the correct software to record your transactions is very important, especially when you have multiple business locations and restaurants. We offer software training on a range of bookkeeping packages. Most importantly our team are available to help support you and give training sessions at your convenience.

We are accredited partners with: Kashflow, Dext, Sage, Quickbooks and Xero. As experienced catering accountants we are able to provide the complete service, whatever the size or complexity of your business, or simply provide support when needed.

FAQ'S

How do I set up my Rent to Rent Serviced Accommodation busniess?

Setting up a limited company is a good move if you’re serious about growing your rent-to-rent serviced accommodation business. It provides liability protection, tax benefits, and a professional image that’s essential for dealing with landlords, clients, and investors. It is important to get advice from an accountant to ensure the limited company is set up correct with the right SIC codes and share structure. Getting the inital set up of the company wrong can have implications further down the road when it comes the annual accounts submissions and tax planning. 

Do you have other businesses? Incorporating your  your rent-to-rent serviced accommodation business into a new group structure that includes other business ventures can allow for further tax saving opportunites. 

Does the TOMS scheme apply to my business?

The Tour Operators Margin Scheme (TOMS) can apply in certain serviced accommodation scenarios, but not all. In rent-to-rent SA, your company rents a property (or multiple units) from a landlord and then lets it out to short-term guests — often through platforms like Airbnb, Booking.com, or direct corporate lets.

Under TOMS:

  • You pay VAT only on your profit margin (not the full turnover).

Whether TOMS applies depends on how you structure your business and who your customers are. It is imperative to get the right advice when structuring your business to be able to maximise the use of available schemes at the very outset. Her at Onyx we have a deep understanding of the complex (TOMS) Scheme and can offer advice on how to best structure your business. While the legislation around the scheme is constanly changing and updating we are here to keep you up to date and future proof our business.

Is Serviced Accomodation Income treated the same as BTL income?

While both scenarios include the renting of property they are not treated the same. Renting Serviced Accomodation to customers is classed a trade income. Renting a BTL to an individual is classed as investment income. Both have different tax treatments, different exemptions, and reliefs. It is therefore important to seek advice from an accountant on the correct way to report the income you recieve.

If you own your own property and have decided to change it from a standard long term BTL to a short term let accomodation you may need to seek advice from an accountant to be sure you are reporting the income to HMRC in the correct way. 

Do I need an accounting software?

Choosing the right accountancy software is crucial for managing your serviced accommodation (SA) business efficiently, especially if you’re operating multiple properties, handling rent-to-rent arrangements, or dealing with VAT and TOMS.

You may not require software at the inital start up stage of your business, asking an accountant for advice will esure you are starting off with the correct bookkeeping habits ensures you are in the best possible position to scale up in the future.  Onyx offer software training on a range of bookkeeping packages. Our team are available to help support you and give training sessions at your convenience. Please see our software page for our list of accredited partners.

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