Non resident landlord - VAT on repairs

[markb28]

Hi all

 

I rent my property out in London but it's been hammered with damp this winter and needs a fair bit or work. I'm in the non-resident tax scheme for landlords.

 

The quote I received is 2700 + VAT. Do I have to pay the VAT element upfront and claim back or do I not pay it at all - asking for a zero VAT invoice to pay? Been looking around, this is not really a home improvement more rectification works.

 

Thanks

 

 

Mark

[wolvesaussie]

No idea but I just wanted to say I share your pain, first we had a leak that the tenant didnt report for 3 days... then we had the roof leak in the stormy weather.... no the house is getting damp and mouldy, I hired these big dehumidifiers to dry the place out but the tenants keep turning them off apparently because they are noisy.... grrrrr

[Notts]

Hi all

 

I rent my property out in London but it's been hammered with damp this winter and needs a fair bit or work. I'm in the non-resident tax scheme for landlords.

 

The quote I received is 2700 + VAT. Do I have to pay the VAT element upfront and claim back or do I not pay it at all - asking for a zero VAT invoice to pay? Been looking around, this is not really a home improvement more rectification works.

 

Thanks

 

 

Mark

 

Unless you are VAT registered, you have to pay it and can't claim it back. Why did you think you might be able to avoid it? (VAT free shopping, for example, only applies to travellers taking goods out of the UK).

 

You will be able to deduct the total amount paid when you do your tax return (as the work is repairs rather than improvements).

[Guest]

If the supplier is VAT registered they have to charge VAT and as Notts says unless you are VAT registered you cannot claim it back.

 

You MIGHT be able to find a supplier who is not VAT registered but you'd be dealing with a very small company.

 

Of course the total cost you pay including the VAT is tax deductible in Australia

[thombatt]

For both UK resident and non-resident owners, VAT will always need to be considered. As a general rule, VAT does not need to be (indeed cannot be) charged on rents to residential tenants. The downside of this is that a residential landlord cannot recover any of its associated VAT costs. However, if any works are to be carried out at a UK property, the UK “zero” and “reduced rates” should be considered carefully as they may reduce the VAT costs incurred (and may allow certain VAT costs to be recovered).

 

Not sure if you are a residential or commercial landlord