VAT on rent payments
Letting Agents

2 Thanks
9 Posts
7 months ago


I have an agreement with an agent who pays me a guaranteed rental sum of £900 per month (the rent to tenants is £1100) for a student residence. This sum has been paid on the dot for 2.5 years. For the last two months the payments have been £860 and £876 respectively. I have taken this up with the agent, who told me that he had exceeded the VAT threshold and VAT is now payable. The agreement is specifically for guaranteed £900 and no other charges.

I pointed out that he was effectively renting the property from me and subletting it, and that his tax payments are his affair and his alone. He countered with the argument that he had consulted his accountant and that rent or not, VAT was chargeable.

Is this correct does anyone know?
Time to change agents I think.

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