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This is probably a question best asked to an accountant, but I thought it would be useful to know what other people's experience has been.

My property has recently been let through a VAT registered agent and I've just received their first statement. They have included in the monies deducted from the rent paid to me the charge of registering the deposit under the tenancy deposit scheme (£35); however, they have also charge VAT on this charge (an additional £7).

My question is simply, is the tenancy deposit scheme a 'disbursement' for the agent or is it a 'recharge' for VAT purposes? From the HMRC website the charge appears to fit the definition of a 'disbursement' and therefore shouldn't attract VAT when passed onto me.

Thanks in advance for any responses or comments


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The agent may be just charging a fee to register the deposit with the TDS as a admin charge and if so any invoice they generate has to have vat.

For a agent to be a member of the TDS they have to have certain things in place such as membership of ARLA/Nals, membership of the ombusman , certain insurance etc. All these cost and the agent may not have had these before April 2007 so the cost is passed down the line.

Your other option is to use a agent who isnt vat registered who uses the free DPS scheme but you have a higher chance of getting a getting a agent who doesn't know what they are doing.

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You have just reminded me Solent of why I try not to use an LA.

£42 to register the deposit :unsure: It cost me nothing!....and I know it's done.

Where's LA Mark? What do you charge Mark?


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