Starting up a small B&B business, what do I need to have in place legally, grants etc

a.eve

hello people, I'm considering the idea of setting up a small B&B and I would be very greatfull if I could gather some feedback from ye all.....I am currently in receit of a social welfare payment and I need to supplement this by trying to make money on my two extra rooms in my house, i've got the marketing side of things sorted but I need to get the feelers out on what sort of things need to be in place before i can start operating.

edanto

I don't know the answer, but I think I know where you can find out!

http://www.failteireland.ie/Business-Supports/Tourism-Sector-Development/Accommodation

You might come back and update us here after you've found out what the steps are?

best of luck!

random.stranger

Hi Op,
As you are in reciept of social welfare, it might be an idea to investigate going on the back to work enterprise allowance or the short time enterprise allowance (depending on which you qualify for). I'm not sure, but I think you are required to do this before setting up the business.


More info here.

Best of luck.

a.eve

oh Thank heavens for Boards.ie So nice to have your input and support, I will definitely look into the back to work enterprise suggestion...i know that i do qualify for the start your own business scheme with the social welfare, which offers me the insentive of retaining 100% of my social welfare payment for the first year, 75% for the second, 50% for the third and phasing out in the fourth year...so to become financialy self supporting as the business grows.

I am of the understanding that the back to work scheme is gone by the way side since the last budget...but since you mentioned Back to work enterprise, I will double check, thank you!

Since I posted this up yesterday I have myself done quite a bit of research myself, and indeed Failte Ireland are the main official organisation who set the standards for the accommodation sector...here is some info of what i have found out.

http://www.failteireland.ie/Business-Supports/Quality-and-Standards/Listed-Accommodation-Criteria/Irish-Home-B-B-s

The above link directs you to the failte ireland site which lists the required sandards and requirements needed to be a B&B.

Further guidance/assistance on becoming approved, you can contact Tourism Accommodation
Approvals Ltd, Coolcholly, Ballyshannon, Co Donegal – Tel: (071) 98 51760 e-mail: taahomes@eircom.net.
Tourism Accommodation Approvals Ltd have been contracted to carry out the quality control
of the listed/approved accommodation on behalf of Fáilte Ireland.

When you receive approval, you can then consider the B&B classification system being introduced this year for all currently approved bed and breakfast accommodation.

But please keep the advice and guidance coming, always lots to learn. Thank you! Thank you!

A. Eve

DoMyBooks

Once your happy with the social welfare sitation you can register yourself as self employed with a form TR1 http://www.revenue.ie/en/tax/vat/forms/formtr1.pdf

Be aware that you don't have to register for VAT unless your turnover exceeds €37,500

At that point its up to yourself whether you want to read up and keep records yourself or pass it onto an Accountant / Bookkeeper.

If you keep the sole trader structure and are careful with your own records you can keep a small accountancy bill.

If you need anymore advice feel free to ask.

wyndham

a.eve wrote: »

hello people, I'm considering the idea of setting up a small B&B and I would be very greatfull if I could gather some feedback from ye all.....I am currently in receit of a social welfare payment and I need to supplement this by trying to make money on my two extra rooms in my house, i've got the marketing side of things sorted but I need to get the feelers out on what sort of things need to be in place before i can start operating.

-Public Liability Insurance
-Fire alarm and exit system, extinguishers/fire hoses, emergency lighting, exit notices on rear of bedroom doors other measures as may be deemed necessary by the fire officer. Fire logbook.
-Safety statement (Req by Ins Company)
-HAACP compliance certificates
-Pest Control measures such as baittraps and logbook for same.

Why not let the rooms under the rent a room scheme taxfree? You would make more money and have about 2% of the hassle.

a.eve

Hi Wynham........

Thank you for your input, and I have noted your suggestion...but if I could get an ideal couple of candidates to rent the rooms, then great...but I think there might be a bit more money to be made as a B&B and the beauty of it is that they are paying guests in your home, you don't have to hand over your house to them as much as if some one is renting of you, and then you can still manage to have your kitchen to yourself and that. Although it's a fair point, thank you!

A.Eve

wyndham

Are the rooms en-suite?

a.eve

At the moment, no the rooms are not en suite unfortunately, but they are not required to be as long as there are other necessary toilets and wash facilities available...Anyway, all this is listed on the page which I gave the link to on my post earlier..which states the required standards and categories of accommodation. So I have nothing to worry about there.

Fol20

dunno if this helps but youd never know

Rent-a-Room Relief

Where a room (or rooms) in a person’s sole or main residence is (are) let to an unconnected person as residential accommodation, gross annual rental income of up to €10,000 in 2009 and 2010 is exempt from tax. Relief in respect of mortgage interest relief is not affected. The relevant Capital Gains Tax/Stamp Duty provisions are also not affected

a.eve

Mmm! ta for your input.....but I think i'll go ahead with the B&B venture. Thanks anyhow!

and Very Good to know, much obliged!

LK1

a.eve wrote: »

Mmm! ta for your input.....but I think i'll go ahead with the B&B venture. Thanks anyhow!

and Very Good to know, much obliged!

Hi

You might want to contact your local Entreprise Board, I work for one, and do a Start your own business course.Know you are looking for start up assistance but the business planning and knowledge of your market will serve you well.Courses are government subsidied and there are many other workshops etc that will put you in the best position to succeed.Find your local one at www.enterpriseboards.ie.

a.eve

Thank you LK1

I have indeed already completed a start your own business course with my local enterprise board, and indeed I have a further meeting with a representative tomorrow 19th March Friday....but what I recognise greatly is that what I now need some help with is Financial aid...that said... with a total of 1,000 euro even I could have the house ready to go....doors ready to open...I need it for some tweaking which is necessary to bring everything up to the required standards, a little for marketing signage etc.

So yep I am aware of the leader program, which hopefully can be of a little help to me, but if anyone knows of any further possible grants/funding pools which i might be eligible for application, then I would be very greatful for your help.

thank you

stepbar

wyndham wrote: »

-Public Liability Insurance
-Fire alarm and exit system, extinguishers/fire hoses, emergency lighting, exit notices on rear of bedroom doors other measures as may be deemed necessary by the fire officer. Fire logbook.
-Safety statement (Req by Ins Company)
-HAACP compliance certificates
-Pest Control measures such as baittraps and logbook for same.

By the time you've paid for all that you won't have much left. Even if you fully rented both rooms @ 50 quid each a night (which is probably optimistic), the max you would turnover 36,500. I'd say you'd probably be lucky to have it full every weekend which is a far cry from max T/O. And remember you have to spend money improving your house. And you have to feed people too.... and pay tax on the profits... and unless you set yourself up as a limited company and pay yourself as an employee you won't be able to get social welfare benefits if it's not sucessful.... and so on and on.

I guess you won't be able to rent your rooms out either as it would more than likely affect your social welfare income (unless it's a widows pension or something of the sort). I'm afraid this idea will be a non runner.

a.eve

Well there's one way to find out, i'm not necessarily intending to rely soley on this one project...All going well while retaining 100% of my social welfare payments for the first year and 50% for the second and with any luck i'll secure a job where I can work mon-fri and run the B&B for weekends.....so I wont say never just yet...glass half full and all that.

wyndham

Forgot to say you will need to sort out your means of taking credit and laser cards, both for payment and when used to confirm reservations. Don't know if you can expect people to pay with cash all the time and Failte Ireland probably require you to have the facility. You need it also to process payments if you have a no-show. Also if you get dodgy guests, it gives peace of mind to have credit/debit card details on hand.

random.stranger

stepbar wrote: »

... and unless you set yourself up as a limited company and pay yourself as an employee you won't be able to get social welfare benefits if it's not sucessful....

I'm really struggling with the idea that the owner of a limited company would have this sort of advantage over a sole trader, are you sure about this stepbar?

MagicMarker

a.eve wrote: »

Well there's one way to find out, i'm not necessarily intending to rely soley on this one project...All going well while retaining 100% of my social welfare payments for the first year and 50% for the second and with any luck i'll secure a job where I can work mon-fri and run the B&B for weekends.....so I wont say never just yet...glass half full and all that.

I don't think you can retain your social welfare if you're going to get a job mon-friday?

If you can get a job why not just do that?

a.eve

No Magic Maker

There was the option of retaining your payment pre the last budget...called back to work allowance, however this is no longer available..but in the mean time I could retain my social welfare payment and start up a business...however if I get work then obvoiusly my social welfare payment will then be replaced by a wage., it is one or the other not both...its all circumstances depending, but in the mean time I want to organise my B&B idea to carry me through either way....I just need to create options for myself

ta, Ta