Vat query

Squirrel99_2

I have rented a commercial premise fir 3 years and 12 months ago the agent wrote to me to tell me he had made an error and has forgot to charge me vat , he has sent me a bill . Where do I stand please ? Has I am trying to get out if the lease as well l

chrismac1

What does the lease say about VAT? My contracts are very clear, "the fixed price fee is X plus VAT". This is in bold writing in the first sentence, no new client could be in any doubt about the VAT status.

If the lease is similarly explicit, pay up. If no mention is made of VAT in the lease, tough luck agent start drafting your leases properly.

Note that rent is normally free of VAT but some owners - for reasons best known to them, all those I have asked have said "I don't know" - opt to tax in which case VAT must be charged on the rent until such time as a successful application to HMRC to "opt out" again is made.

Squirrel99_2

Thank you for your reply ,my landlord wants me to pay 20 months of an 32 month outstanding lease . Which equates to zap prob £13000 I gave offered £5 he has refused . Any advice please ?

antonic

chrismac1 wrote: »

What does the lease say about VAT? My contracts are very clear, "the fixed price fee is X plus VAT". This is in bold writing in the first sentence, no new client could be in any doubt about the VAT status.

If the lease is similarly explicit, pay up. If no mention is made of VAT in the lease, tough luck agent start drafting your leases properly.

Note that rent is normally free of VAT but some owners - for reasons best known to them, all those I have asked have said "I don't know" - opt to tax in which case VAT must be charged on the rent until such time as a successful application to HMRC to "opt out" again is made.

Spot on there Chris,

As Chris has stated check your lease, if it doesnt say £x + VAT, then he can ask you to pay the VAT, but your definitely not obliged to pay it.

If he cant get his leases written correctly he is silly.

agrinnall

antonic wrote: »

Spot on there Chris,

As Chris has stated check your lease, if it doesnt say £x + VAT, then he can ask you to pay the VAT, but your definitely obliged to pay it.

If he cant get his leases written correctly he is silly.

I assume you're missing a not from the highlighted bit.

antonic

agrinnall wrote: »

I assume you're missing a not from the highlighted bit.

Thanks agrinall - your dead right !

Post amended

zygurat789

chrismac1 wrote: »

What does the lease say about VAT? My contracts are very clear, "the fixed price fee is X plus VAT". This is in bold writing in the first sentence, no new client could be in any doubt about the VAT status.

If the lease is similarly explicit, pay up. If no mention is made of VAT in the lease, tough luck agent start drafting your leases properly.

Note that rent is normally free of VAT but some owners - for reasons best known to them, all those I have asked have said "I don't know" - opt to tax in which case VAT must be charged on the rent until such time as a successful application to HMRC to "opt out" again is made.

You should read your lease and when you have read it you should read it again. It is an imperative document, if it says yiou walk round the build naked at midnight once a year then you can be asked to prove it to keep the lease.
I worked for a company had a longish lease on a shop. Lease siad that before six months of the end of the lease the owner had to advise the company of the new rent. The boss knew his leases and just sat there and waited. Six months came and went and no letter from the landlord. Heyho another longish lease at the old rent, in those days were going up hand over fist.