Thread: VAT Help!

Just wondered if anyone has any knowledge of VAT? Basically we are renewing the tenancy on our flat and the letting agent, Foxton’s, are charging us an £80 admin fee for the pleasure (of doing nothing!) but they also want to charge us VAT ontop of the £80 admin charge. Are they able to do this? It’s an admin charge, does this count as a service? I am confused and don’t want to pay them any more than I should! x

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Righty then, from my limited knowledge of VAT (as in avoiding paying it as much as possible!) the charge does sound like a service charge and would therefore be VAT chargable at 15% but ask them for a receipt with a clear breakdown and their VAT number on it.

It should come to £92 exactly but make sure you know what they're charging you for.

Hope this helps a bit xx

Give customs and excise a call on 0845 010 9000. They really are very helpful (and at least one of them is a What Katie Did customer no less!) They should be able to give you a straight answer on anything VAT related.

Katie

Thanks guys! I just think Foxton's are fleecers and the guy I spoke to has been so very rude to me it's quite upsetting!! He even said 'I am surprised you are risking the renewal of the home you love over this' all because I asked him to explain that the fees meant!!! x

£80 plus VAT just for a renewal? My flat was only £50 admin, and the renewal was free!
Kick up a fuss time me thinks.

In the credit crunch times we are facing I wouldn't be suprised if you couldn't find a better deal with another letting agent. Places like Foxtons can only charge these kinds of fees if people allow them to charge such a fee by using their service and not someone elses.

I've lived in 3 rented properties in 3 years, and all administration charges (including late payments, oops) have been +VAT. Its so annoying (and expensive!) I can (ish) understand if they are going to draw up a new contract with you, as legal fees often cost a bomb, but if you're just continuing your existing contract then where is the charge? No new direct debits or standing orders set up, no new paperwork, its a rip off Check you're existing contract for any mention of this, and if they insist on charging you ask to sign a continuing contract if you aren't already.

x x x

VAT is chargable on goods and services. You don't have to charge VAT if your turnover is below a fixed amount (I think curently £64k-may have changed in budget) You can however register voluntarily to pay/charge vat eg if you were buying in a lot of stock and having to pay suppliers a lot of VAT. As said earlier ask for a VAT receipt which will show the companies VAT Number - Hey you could have been paying 17.5%. The HMRC website will help if you want more!!!!

Are you all asleep now?:eyebrows:

Yes, it does sound vatable, unfortunately. And nothing surprises me of Foxtons.

AFAIK in property rental there is the Option to Tax - the lessor renting out the property can choose whether or not to charge VAT on the property rental. On the "service" charge however I think the VAT would be obligatory and not optional.