Being charged vat by letting agents

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Being charged vat by letting agents

    Hi All
    Qick question.Been renting my property out now since 2005.Previous 2 letting agents have never charged me VAT and thats with my property being managed by letting agents and them taking 10% a month plus also with the set up fee ect...Never charged me VAT
    I do of course do a self assesment every year and pay what ever income tax i have to pay.

    I have recently used a new letting agent,using there full management fees.They found a tenant and he moved in on the 29th march 2010.

    I have just recieved there statement of account :
    Tenancy set up fee £195.00 + £34.13 VAT
    management fee at 10% £52.50 +9.19
    PSG at £58.75

    So i have paid £43.32 total in VAT

    Can i expect them to add VAT to every months rent i recieve?

    There is no VAT taken out of my part time wage i earn and theres never been any VAT taken out of my full time wage when i used to work full time only income tax.

    Can someone out there give me some advise please.

    Regards
    carl67

    #2
    Originally posted by carl67 View Post
    Can someone out there give me some advise please
    Well first you seem to be muddling VAT and income tax.

    The agent is charging VAT on their service to you, in the same way as a plumber or solicitor would. They won't charge VAT on the amount of the tenant's rent (if they are collecting this for you) but on their fees.

    You pay income tax on your profits from letting (from which the agents fees, inclusive of VAT, is a deductible expense)

    As for why you weren't paying it with your previous agents - possibly it was inclusive, or more likely they weren't registered for VAT.

    Comment

    Latest Activity

    Collapse

    • Part Admission of Debt MCOL Help!
      nessa
      Hi, hoping someone can help.

      First claim on mcol, so I’m finding my feet.

      I have just received forms n9a and n9b from the court, regarding the defendants part admission to my claim started in mcol.

      However that was all I have received, I received no other forms...
      24-01-2018, 06:15 AM
    • Erroneous Change Of Occupancy Fee
      Sonofahod
      Hi There,

      I am planning to move out of a shared rental property in March. Foxtons, the agency managing the property want to charge me a £300 "Change of Occupancy" administration fee as we have not reached the full term of the tenancy. I realise that the fee covers both me leaving...
      23-01-2018, 13:16 PM
    • Reply to Erroneous Change Of Occupancy Fee
      mariner
      Your information is severely deficient,
      Of course a move out inspection can be chargedeven with no move in report.
      You accepted LA fees by proceeding with Application.
      Deposit ADR cannot be used to contest Agency fees.
      24-01-2018, 02:53 AM
    • Attending Court - Advice Please
      Muzza
      Hi there

      I posted recently about our tenant leaving and giving her ex the keys to our house, we have a court date of 4th January for which Im flying back to the UK to attend (no contact or rent received from the persons she has left in there still). I feel hes staying in there as long...
      12-12-2017, 18:03 PM
    • Reply to Attending Court - Advice Please
      Muzza
      Thank you, Ill take a look!
      24-01-2018, 02:31 AM
    • Broken Boiler
      andy967
      HI - our boiler broke yesterday - our landlord is currently waiting for a quote for a new boiler - however one of the problems we have is that she lives abroad. It consequently means she's able to speak to people in the uk about any sort of business matter for 3 hours in the afternoon. I'm wondering...
      23-01-2018, 13:55 PM
    • Reply to Broken Boiler
      Muzza
      I live in the US at the moment, 7 hours behind the UK, yes its difficult BUT when my boiler broke I had someone out within 2 days, one thing she should have in place is a boiler cover or she should have tradesmen lined up who she trusts so if something goes wrong she can get in touch with them immediately,...
      24-01-2018, 02:29 AM
    • Section 8 notice served, what next
      lakemk
      Hi section 8 notice was served for rent arrears last wk, it doesn’t look like the tenant is going to pay , my question is what should I do next to prepare me for the court as I never been.

      I ve seen the post before abt the tenant may defend for disrepair, the house in fairly good condition...
      22-01-2018, 21:46 PM
    • Reply to Section 8 notice served, what next
      Muzza
      Hi - I attended court a few weeks ago, we used several grounds in the section 8, the mandatory one being the rent arrears, they didnt put a defence in, show up or pay so the judge just asked for proof I had served the section 8 (proof of postage receipts from the PO) and an up to date rent statement...
      24-01-2018, 02:24 AM
    • Leak into downstairs flat - advice
      Dberry
      Hi,

      I'm new the forum and the UK and wonder if you can advise…
      I’ve recently moved to the UK from Canada and so I’m not sure of rights and liabilities... I moved into my flat a few months ago and caused a leak into the apartment below me by leaving the tap running in the bathroom...
      23-01-2018, 08:50 AM
    Working...
    X