Commercial Rent

Andyjb

Iam about to sign a lease on a small industrial unit for hobby use not running a business, can the landlord charge Vat?

The property was advertised at £175 per month by the agent with no 'plus Vat'

Thanks for any help.

T0mmyh

Yes............

davidmcn

What does the lease say about VAT? Unless it says VAT-inclusive (and I can't remember the last time I saw that), then the landlord is entitled to add VAT (assuming they have opted to tax the property).

Andyjb

Nope no inclusive of Vat mentioned, I'll just absorb it this time!

Thanks for the advice

ACG

They can only charge VAT if they are registered to do so.
https://www.gov.uk/vat-businesses/when-to-charge-vat - It might be a read of this.

Miss_Samantha

If the only thing mentioned is "£175", then my understanding is that they cannot charge anything extra:

VAT is not chargeable on rents unless the landlord opted to, and VAT is the responsibility of the supplier in a transaction.
If the contracts states a sum payable then that is what you have to pay, nothing more.

Andyjb

My lease agreement stated £1925 per annum as I offered full 12 months payment for the price of 11