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<p>There has been no change in government policy in this area. Service charges payable
by residents to a landlord are exempt from VAT and continue to be so. Equally, the
supply of any on-site staff to an individual, landlord or company has, since the inception
of VAT, been a taxable supply.</p><p> </p><p>HMRC became aware that a number of property
management and similar companies had not been correctly accounting for VAT on their
services, thereby giving them an unfair advantage over their competitors.</p><p> </p><p>To
address this, on 7 September 2018, HMRC issued a Revenue and Customs Brief 06/2018
and associated documents to publicise the correct VAT treatment in respect of goods
and services, including staff, supplied by a property management company or similar
to a landlord or a “Right to Manage” (RTM) company. These documents are available
via the gov.uk website.</p>
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