pdavidson Posted March 12, 2012 Report Share Posted March 12, 2012 Hi, If I was to rent properties for someone and charge a % fee for doing so am I right in thinking I would only pay VAT on the cost for my service? So lets say I receive £500 pm, I charge say %10, that would equate to £450 to property owner, £10 to HMRC ( VAT ) and £40 to the managers ( us ) ? This is based on us being VAT registered ignoring end of year accounts where we pay tax on all our income at that point. Make sense? Link to comment Share on other sites More sharing options...
Grampa Posted March 12, 2012 Report Share Posted March 12, 2012 £500.00 RECIEVED £ 50.00 TO AGENT = 10% £ 10.00 VAT £440.00 TO LANDLORD Link to comment Share on other sites More sharing options...
yellowbelly Posted March 13, 2012 Report Share Posted March 13, 2012 ... and all those £50 to agents have to add up to £73,000 (I think) for you to have to be VAT registered. So if you are only managing a few houses, then VAT won't be an issue Link to comment Share on other sites More sharing options...
Grampa Posted March 14, 2012 Report Share Posted March 14, 2012 Unless you have chosen to be vat registered before hitting the 73k mark. Link to comment Share on other sites More sharing options...
pdavidson Posted March 15, 2012 Author Report Share Posted March 15, 2012 BIG thank you! Great advise as always! Link to comment Share on other sites More sharing options...
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