Letting agents trying to add VAT to cleaning and checkput

princeofpounds

Tenancy agreements typically count as consumer contracts and so reading the hmrc guidelines the price should include VAT. I can't give you cast-iron precedent but it seems that way to my purely lay perspective

googler

Duplicate thread on same topic....

https://forums.moneysavingexpert.com/discussion/4255031

malcolmffc

G_M wrote: »

So? ....

We didn't have the time to clean the property ourselves back to the standard it was in when we moved in, as we moved out with 2 days remaining on the lease and the priority was getting setup in our new place. My wife is pregnant so can't be around cleaning chemicals, so it was simply easier just to go with the agents cleaners.

They did a good job, because theyre not making any deductions for damage from the deposit - the only argument is over this VAT question!

Fire_Fox

I don't get this pregnancy and chemicals thing, do you get a free pass not to maintain personal hygiene for nine months or something? If so someone should tell the men that it's the same active ingredient in washing up liquid as shampoo, and you can clean all sorts with washing up liquid or vinegar. Oooops I just did.

rpc

When my wife was pregnant, she just wore gloves around cleaning chemicals.

Other posters have given you links to chapter and verse about quoting one price, then charging another. Read these, then use them to construct a letter. If the agent says "£280" then that is £280 either inc VAT or with no VAT due.

malcolmffc

OK, I'll draft a letter citing the relevant Acts.

What can I do if they continue to refuse to not charge VAT? THreaten to call trading standards? Unfortunately the T&Cs we signed state they will deduct the cleaning fees from the deposit, so we will have to persuade them NOT to deduct this.

Fire_Fox

Don't imagine anything: use the TDS dispute system, supply evidence from HMRC/ legislation that you are not supposed to be charged VAT. Think you are getting ahead of yourself rather, just take it one step at a time.

malcolmffc

OK, proposed letter: any comments?

Dear XXX

I write regarding the £56 VAT you are claiming is due on the £280 cleaning and checkout fees specified in your terms and conditions, despite there being no indication on the form we signed that this price is VAT exclusive.

HMRC's guidance makes it quite clear that when a price is advertised to consumers without stating it excludes VAT, it must be assumed that VAT is included:

http://www.hmrc.gov.uk/vat/sectors/consumers/basics.htm

"Products advertised in outlets, magazines, on the internet, or shown in catalogues, price lists and other literature may be aimed at the consumer, businesses, or both. If they're only meant for the general public, they'll show you a price including VAT. This is a legal requirement."

Additionally see the following guidance on the Consumer Protection Act 1988
http://www.bis.gov.uk/files/file8127.pdf

p18 re-iterates that prices advertised to consumers must either include VAT or display ex-VAT and VAT inclusive prices with equal prominence.

In summary we believe it is illegal for XXX to be charging VAT on top of the prices for cleaning and checkout we agreed to. We are sure XXX does not wish us to have to contact Trading Standards over the relatively small sum of £56. However, if XXX continue to insist VAT is due, we will unfortunately have no option to do this, and also formally dispute the £56 with the TDS.

We hope to resolve these issues quickly and amicably, and look forward to hearing from you soon.

Fire_Fox

Quote HMRC and the Consumer Protection Act or the guidelines using quotation marks and italics, the references are for proof only. Or have you done it backwards, references then quotes? If so switch. The agents/ landlord/ TDS staff should not have to type in the web address to find out what it says, your letter should contain all the information.

"We are sure XXX does not wish us to have to contact Trading Standards" reads as a threat, maybe just assert that you are willing to raise a dispute with TDS. Also I am confused who you are writing to, in the first line you say "you are claiming" but later you appear to be referring to the agent as a third party?

malcolmffc

I'll be sending both a hard copy and an email.

I thought mentioning Trading Standards might make them pay attention and back down - do you think this would make them overreact?

Thanks for the style tip - I'll rewrite the first part in the 3rd person