FHL - Trading Status and VAT

Dear Sir/Madam, A property is currently being let out and meets all the criteria to be classed as a FHL. The services provided are not material and so it is not registered as a business (i.e Self Employment). What would happen please if turnover happened to exceed the VAT registration threshold. Would it then have to be registered as a business (i.e self employment) regardless and from the date VAT registration is required, or is VAT actually not an issue given the services provided are not material in nature (i.e not akin to a hotel)? Thank you.

Hi,
If your gross income for holiday letting exceeds the current VAT threshold of £85000 in any rolling 12 month period, you must register for VAT.  
For more information, please phone our VAT helpline on 0300 200 3700.
Thankyou.

Thank you. The income/expenditure have been shown on the Land and Property pages of the tax return as the services provided did not constitute a trade. Given you now advise that VAT registration is required when turnover is above £85,000, does this mean the holiday let would have to be registered as a self employment and declaration now be made on the self employment pages instead?

Hi,
As you have stated if the income you receive from a FHL is above £85000 in a year then would need to register and pay VAT.
You would still declare the actual income from the FHL within the UK Property pages of the self assessment tax return.
Thankyou.