Rent North East are required to add VAT at 20% to the prevailing rate to all of our management and letting charges.
VAT is not added to rent or deposit charges.
VAT on uplifted invoices:
When uplift is added to a purchase invoice, VAT is calculated on the whole amount rather than just the uplift portion, whether or not the contractor is VAT registered.
This is because when we add an uplift to the contractor’s original invoice, we are essentially taking responsibility for the contractors invoice, and then billing the Landlord separately. This is no longer seen by HMRC as a disbursement and so VAT will need to be charged on the entire invoice rather than just the uplift portion. Please see this page from the Gov.uk website for further details.