Property rental company VAT return

[Holymoly]

I've been approached to prepare VAT returns for a business that rents out domestic and commercial property. The commercial properties are a mix of exempt and standard rated.

My approach would normally be to include ALL rental income, both domestic and commercial in box 6 of the VAT return however the previous agent only included the commercial properties where the option to tax had been exercised. This has the effect of omitting over 90% of the business income from box 6 of the VAT return. While I am happy the VAT will be correct I'm concerned that the net sales will be understated.

What are your views?

 

[Scalloway]

This post says that the exempt rental income should be in box 6

http://www.ukbusinessforums.co.uk/t...property-income-and-partnership-issue.297743/

 

[UK Contractor Accountant]

Have you ever considered that the business might be subject to the partial exemption rules for VAT?

 

[Holymoly]

Have you ever considered that the business might be subject to the partial exemption rules for VAT?

It isn't, but that wouldn't affect the net sales for box 6 purposes in any case.