Paying letting agent VAT

[carl67]

Hi All
Qick question.Been renting my property out now since 2005.Previous 2 letting agents have never charged me VAT and thats with my property being managed by letting agents and them taking 10% a month plus also with the set up fee ect...Never charged me VAT
I do of course do a self assesment every year and pay what ever income tax i have to pay.

I have recently used a new letting agent,using there full management fees.They found a tenant and he moved in on the 29th march 2010.

I have just recieved there statement of account :
Tenancy set up fee £195.00 + £34.13 VAT
management fee at 10% £52.50 +9.19
PSG at £58.75

So i have paid £43.32 total in VAT

Can i expect them to add VAT to every months rent i recieve?

There is no VAT taken out of my part time wage i earn and theres never been any VAT taken out of my full time wage when i used to work full time only income tax.

Can someone out there give me some advise please.

Regards
carl67

[Snorkerz]

Same answer here as on the other forum(s) you posted.

VAT is charged on certain services by companies that are forced to charge it. It is a tax on goods and services so it wouldn't apply to employment.

The VAT is chargeable on the management fees - not on the rent itself. If you yourself register for VAT you may be able to reclaim it. Previous agents may not have charged it because they were too small to be compulsory registered.

Income tax is a tax on - well - income. You should pay income tax on any income from tenants - but you can deduct certain expenses from that income before calculating tax.

[Telometer]

"If you yourself register for VAT you may be able to reclaim it."

Not likely to be a good idea.

[Snorkerz]

"If you yourself register for VAT you may be able to reclaim it."

Not likely to be a good idea.Oh, I agree - but it's true.