VAT on Room Rental

[Wendyk]

hi geeks

Looking to tap into your knowledge. I rent a room in a beauty salon and the rent is pretty steep. What makes it even worse is that i am being charged VAT on top of my weekly rent at a rate of 17.5%.

This is the first time ive came across this when renting a room and wanted to know if they can do this? Also can they charge it at the rate of 17.5% or should it be 15%

Any help would be appreciated

 

[Kim Lawless]

There is no VAT on rent........is there????

 

[AndyP]

There can be VAT on rent in certain circumstances, but generally only for the main tenant, and most definetely should only be currently charged at 15%. I pay VAT to my landlord on my property but don't charge it to my renters. You should possibly have a service charge for electric etc which shoudl be VAT is if it charged.

But being blunt i don't think you should be charged VAT and suggest you talk to your landlord about it asking why he believes he should be charging you, he may be being dumb and charging you in ignorance. If this doesn't solve it speak to HMRC for their view.

 

[Urban Geek]

I have rented space in various salons over the years and one salon said that if I wanted a receipt for my rent I would need to pay VAT.

I get receipts for my current room rental and for the one previous to that and there has been no mention of VAT.

I suppose it is at the salon owner's discretion.

 

[koolkitty7]

I rent out houses etc and as far as I am aware you cannot charge VAT on rent. We certainly do not!

Not too sure about rent a chair/room etc.

Even if you do have to pay VAT it should only be at 15% and I would advise for you to speak to the landlord and claim the 2.5% you have been overcharged back! Think the drop in VAT was from December 1st?

HTH

 

[littlepanther]

I had a visit from the VAT man last week and he stated that it was correct not to pay VAT on my rent to my landlord and also for me not to charge VAT on the rent of my flat to my tenants

Even if you did have to pay would only be at 15%

 

[Wendyk]

Thanks everyone for help. Im going to call HMRC just to check for sure then i'll bring it up with my landlord.

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