Can my landlord add VAT to my rent?

Discussion in 'Accounts & Finance' started by EdwardK, Dec 12, 2013.

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  1. EdwardK

    EdwardK UKBF Newcomer Free Member

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    I have just recived a letter and an invoice from the agents of my landlords to say that my landlords have opted to tax the property that i lease. Pub on ground floor with my private occomodation n the first floor.

    The invoice was for three months rent + VAT, as well as two previous quarters VAT.

    Im VAT registered so i can claim back the vat, however I now have to find £2500 to pay VAT that I wont be ableto get back till march next year. The amount is due at the end of the month.

    My question is

    Can my landlord do this to my rent without any notice or communication? My lease ends in 2015.
    The last rent review was 4 years ago.
     
    Posted: Dec 12, 2013 By: EdwardK Member since: Dec 12, 2013
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  2. 123Simples

    123Simples UKBF Enthusiast Free Member

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    You would have to check your lease agreement as I'm sure that even though you may be living above a commercial premises, the fact still remains that you would have some period of notice of intent to change the agreement you would have signed in the first place
     
    Posted: Dec 12, 2013 By: 123Simples Member since: Jul 10, 2011
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  3. deniser

    deniser UKBF Legend Free Member

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    They can usually do this, yes, if your rent is expressed to be a figure plus Vat if any - which it normally does.

    Your solicitor would normally raise this as a pre-contract enquiry. It might be worth checking what was said in reply at the time.

    If vat is an issue, the lease would contain a provision prohibiting the landlord from making the election or for the rent to be inclusive of vat so you do need to check your lease.
     
    Posted: Dec 12, 2013 By: deniser Member since: Jun 3, 2008
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  4. EdwardK

    EdwardK UKBF Newcomer Free Member

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    I have had the lease for 6 years, there has never been any mention of VAT on the rent, the pre contract question about VAT on rent was NO=Charity.

    I bought the balance of a lease that started 40 yrs ago.

    The simple fact is i dont have any means to magic the extra money to fund the VAT Which i have had no notice about, even though they put an option to tax on the property in June.
     
    Posted: Dec 12, 2013 By: EdwardK Member since: Dec 12, 2013
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