Hi, we have started a holiday lettings company that offers holidays in caravans and lodges.
We don't own the properties, we only manage on behalf of an owner and charge hem commission.
The challenge we have is all monies for the holidays go into our business account and are then released to the owner on a monthly basis minus our commission and any monies for cleaning service that we provide.
The problem is, this is then causing us to race towards the VAT threshold as all monies are considered as turnover in the 12 month period, even though 85% is paid back to the owner.
We have had some advise that a Cloent account might be the way to go and we are seeing our accountant in 2 weeks time in support of this. However in order to get a client account you need to get on the anti money laundering register and we are waiting for trading standards to come back and confirm which association we need to register with.
This is all taking a lot of time and meanwhile the monies comming in is growing and I am worried that we will not get a client account in place before we hit the threshold and have to pay against values significantly inflated due to monies not being ours.
I am also not sure if the approach we are taking is a bit overkill.
Any advice on how to tackle this issue?