Company Set Up

[janes]

My wife and i have a portfolio of several properties which we run through an agency. He is vat registered and charges vat on his service charge. Can we set up a copy to handle our side of things, insurance mortgage repairs etc and register for vat in order to get back his charges?

[Chestnut]

I'm no expert, but is there anything to be gained by registering for VAT, for which you must exceed a minimum turnover?

If you do register, I thought it merely enabled transfer of VAT liabilities of your agent to you, so you still pay.

If you don't exceed min. turnover, and therefore unable to register, your situation remains as is.

Hasn't the question of setting up a rental company been discussed before, concluding it's of no benefit?

I thought this was because, as a private landlord is allowed to deduct their expenses (including any VAT) from their gross income from property rental for income tax assessment, it's as broad as long.

I await enlightenment!

[Melboy]

You are entering the domain of a limited company status and the VAT turnover is roughly £70,000 per annum before compulsary registration is required OR if you exceed that figure in any 3 month period.

Personally I wouldn't bother in your case unless of course you are turning over a large amount of money. There is so much red tape now for the small business that if I were you I would steer clear.

Mel.