Tax advice please

[Slingsanderrors]

Name changed for this and not sure where to post.
My sister is in the process of buying a static caravan on a park resort with her newish, rather flakey partner. They’re both mid 60’s and don’t work, she has a small occupational pension, he is on benefits. They are planning to let out the caravan during school holidays. I’m wondering if they’ll have to register as self employed with HMRC and declare any income. They think they won’t, but I’m sure I read somewhere that holiday parks are obliged to tell HMRC if people are letting.
I think she’s mad for buying anything with him, but I wouldn’t like to see her in trouble.
Any advice?

They will have to register with HMRC and declare the income made. However they will be able to deduct the many, many expenses so they probably won't owe anything. Static caravan holidays are in decline and they are very expensive to own and run, don't hold value. They won't make any money, I am afraid.

I wouldn’t be giving her tax advice, I would be advising her not to do it at all. Just google it, there are lots of awful stories of people loosing a lot of money due to buying these holiday park caravans.

I know. But she won’t listen, it’s a disaster waiting to happen!

The income is taxable though there are costs that can be offset. I doubt they will make any profit anyway but the additional income could impact her partner’s benefits.
I’d be more worried about the park fees and difficulty of selling it on. There are so many stories of people losing a lot of money.

Thank you. I know, I think they think they’ll make a fortune!

I know! The partner is driving this, sister does whatever he says. He’ll be trying to avoid telling HMRC, but there’s no hiding from them!

Thousands of people have made the mistake of thinking that this is a good investment. It most definitely is not. All you have to do is search online and you'll find numerous horror stories of people who have lost tens of thousands like this.

What worries me the most is their age and the newish flaky partner bit.

How are they financing this purchase if he's on benefits? Oh, let me guess - your sister is paying, isn't she?

I know. It’s utterly stupid but she’s smitten - god only knows why!
Sister says they have paid 50% each for a £45k van, but I think she’s probably paid it all.
I’ve even done the maths and pointed out the number of holidays they could have with that money, but she just tells me to back off.
so all I can do is watch it all go tits up, and I’m not in a position to bail her out, even if I wanted to.

£45k? Oh dear. They won't be getting that back when they come to sell it.

They certainly won’t! It’s now a done deal, signed and deposit paid, get the keys at the end of next week. Now we sit back and watch, it’s not going to end well.
thank you everyone who’s posted for reassuring me that I’m not a miserable interfering cow!

Next “investigation” for me is to see if being away from his council flat for months on end will have any effect on his tenancy and housing benefit!

Oh dear @Slingsanderrors your definitely not interfering, just a concerned sister. Vent away here anytime

He would be hard pressed to pay over 20 k whilst being on benefits - don’t they normally stop if you have savings ?

I would have thought so. Maybe sister paid it all, she’s certainly not saying if that’s true!

Obviously she’s a grown adult, in her mid 60’s, has worked etc, but she’s always been protected, by our late parents, then by her ex partner. I think she is vulnerable, in that she’s obsessed with this chap, and I think he’s possibly (probably,) taking advantage of that. I don’t live close by and don’t see them together, but our brother says that if he (bf) says jump, she jumps. But she’s insistent that she’s fine, that she’s happy with him and happy to spend her money on him.
We’ve pointed out the pitfalls and warned her about him possibly taking advantage, but she doesn’t want to hear, and we can only stand by and watch.

What an incredibly sad and delicate situation. The thing is if everyone keeps saying to her she might double down and keep a grip of him tighter. Best keep the lines of communication open and let her know you are there for her whenever. I think you are right though and he's going to rinse her dry.

Where is she going to live whilst renting? Yes she (or him, or both) will need to register for self assessment abd complete an annual self assessment form (not for faint hearted). They will also need to register for council tax if its their main home ... which might be problematic if it's not a 52 weeks per year site. There's a good group on Facebook highlighting the pitfalls of caravan ownership ... we love ours but it is a getaway from home place that we can afford.

since she left her ex partner of 30 years a year or so ago, she’s flitted between new partner, a friend and our brother. She doesn’t have a home of her own, although she did have enough money to buy a small flat.
He’s registered for council tax at his council flat. She, I think, is hoping that our brother will say that she is living with him for council tax purposes.
Yes, they’ll have to register with HMRC for self assessment, and yes it’s not for the fainthearted - I’ve done it! He’s never had a career, or a steady job, bits and bobs here and there, and benefits. No private pension I don’t think.
The park is open 10 months a year. I’ve seen the fb page, and the ways some of the parks behave.
It’s a shit show basically.