GPEL Posted June 22, 2007 Report Share Posted June 22, 2007 I have a flat above my business premises which I rent out. I am VAT registered but do not charge VAT on the rental income from the flat. Should I be charging VAT on top of the rent, my feeling is that as a sole trader I shouldn't? Any help gratefully appreciated. Link to comment Share on other sites More sharing options...
lauralivesartnouveau Posted June 22, 2007 Report Share Posted June 22, 2007 Hi Domestic property rental income is exempt from vat unless a letting agent is used in which case the agents fee is vat liable in most circumstances. Oliver Link to comment Share on other sites More sharing options...
plym77 Posted June 23, 2007 Report Share Posted June 23, 2007 agreed and if you have any costs that cover both properties then you will need to calculate a partial exemption. to exclude input VAT applicable to the residential flat unless it is below the de-minimus - more info can be found on HMRC's website Sherena Link to comment Share on other sites More sharing options...
GPEL Posted June 23, 2007 Author Report Share Posted June 23, 2007 Thanks both, I'll pass to my accountant as confirmation. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted June 23, 2007 Report Share Posted June 23, 2007 "de-minimus" is a wonderful tool - you should look into it in depth as i had to argue with my accountant for several years over the limits you can stretch it to.....2 VAT inspections cleared my arguement in my favour....... Simon Link to comment Share on other sites More sharing options...
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