VAT on rental income

[browny]

I hope someone can help me. We have VAT deducted from our rental payment each month by the rental agent. Both myself and husband filled in a NRL1 form, does this not mean that we should not have VAT deducted from the monthly rent?

 

Thanks xx

[Guest Helchops]

I think it's income tax and not VAT? We've filled in the same form but haven't heard back either as yet.

[kizzy]

Hi

 

Our first agent charged us 10% of rental income per month but our new agent charges 10% plus VAT so interested in seeing your replies.

 

Tracey

[Guest Helchops]

Kizzy, I think you're talking about their management fees!?

[browny]

oh, also can they charge vat on the management fees?

[Guest markandcate]

We queried this with our agent when we first moved here as we had filled in the NRL1 form and the fact we are not even in the country but we were told that we still have to pay the VAT, can't remember the exact reason but think it was something to do with the agent/property being in the UK.

 

Hope this helps!

[Rammygirl]

Yes it seems to be where the real assets are that make the difference. Our agent in Oz charges GST on their fees even though we are in the UK. I did check with an accountant and this is correct as they are managing "real" assets in Oz.

 

I guess then it works the same the other way round, but it might be worth checking with HMRC or an accountant.