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

    • Mouldy silicone wear and tear?
      aciduzzo
      Tenants are moving out today and i am doing the final inspection later; however, last time i was at the flat i noticed the bathroom was in a poor state.

      What is the general opinion on black mould that has formed inside bathroom silicone? Is it considered wear and tear? Also, the seal...
      03-07-2017, 08:07 AM
    • Reply to Mouldy silicone wear and tear?
      mystic08
      You might like to gift your new tenants some Kilrock mould cleaner which is magic in a bottle! Cheapest in the Pound shop or The Range but supermarkets sell it too. Works brilliantly on algae too. Garden pots, patios, headstones etc.
      22-07-2017, 20:52 PM
    • Discussion - GDPR and implications on landlords
      MrShed
      I've just posted something on GDPR and then wondered whether it had been discussed on here before - a quick search implies its never been mentioned.

      I thought I would raise a topic to discuss it and the implications on landlords.In effect this is a replacement of the Data Protection Act...
      20-07-2017, 15:01 PM
    • Reply to Discussion - GDPR and implications on landlords
      jjlandlord
      That's the exemption that allows sending data outside of the EEA, which is the issue discussed.



      No, because of that very exemption....
      22-07-2017, 19:19 PM
    • Referencing question
      kangoo1
      A couple wants to rent from me, she is on maternity leave and will not be returning to her previous employment, he is permanently employed and moving due to a job transfer. I have referenced him for the full rent and his guarantor has been successfully referenced.
      I am going to prepare the ast...
      22-07-2017, 17:19 PM
    • Claiming for protected deposit
      mandm
      This is an interesting one, got me into a spin.
      Tenants signed AST but decided to leave after 6 months and 3 days (problem with moving) using the break clause in the AST. I protected the deposit using DPS (Insured) and returned the deposit minus deductions when the moved out.
      I served the...
      21-07-2017, 08:00 AM
    • Reply to Claiming for protected deposit
      JK0
      I'll leave it at that. I'm not going to get into one of JPK's interminable arguments.
      22-07-2017, 16:28 PM
    • Reply to Discussion - GDPR and implications on landlords
      jpkeates
      That's simply one of the Schedule 2 exemptions which, if met, allows a process using personal data at all - all the other principles still apply in parallel (where it can be stored, be not excessive, kept up to date etc).

      So, while it might be OK because it relates to a contract, there...
      22-07-2017, 15:22 PM
    • Excessive estate agent fees
      Cml241
      I have a property which I started renting out via an agency. When the contract started, they found new tenants, did the relevant checks etc and charged an upfront fee which equates to approx one month's rent. As one year has almost passed, the agent has approached me asking if I want them to 'renegotiate'...
      21-07-2017, 16:26 PM
    • Reply to Excessive estate agent fees
      mariner
      A new 12 month fixed term does provide LL & T with extra security but can lead to complications for either if their resp circumstances/legislation change during the new AST.
      Personally, I would prefer if a orig AST was for a fixed 6 month term, followed by an SPT that required both LL &...
      22-07-2017, 14:09 PM
    Working...
    X