What is the question and we can see if we are able to assist?
Thanks for your question -
VAT would not be due on the HMOs, so this is being managed effectively and correctly BUT then the input tax suffered on these two HMOs should not be claimed
Thanks for your response - yes this is being treated correctly.
The shared services need to be worked out i a consistent way - per rooms, or sq footage - so its not at all complicated -
If the HMOs have guests just staying one or two days then this sounds like a guest house - not a rental of HMO. You would need to get HMRC VAT to determine this and make a formal riling
There is noting wrong with two of them having HMO licences, the local council must have agrred and they carry our rigorous checks.
And the guests are renting the rooms - if no services are provided, and they share kitchen and bathroom facilities OR have access to their own on a studio type basis - and they fulfill the remaining remit as detailed, then the status of the building is correct.
Is breakfast supplied, sheets changed? Rooms cleaned for the guests ? That is the main determination that is looked for in a guest house situation.
But whether trade or rental income - the income tax/corporation tax would be the same its just the VAT sitation that I can see concerns you
Even if they stay just one or two nights IF NO services are provided, then its just rental income - the HMO determines the size of the property the layout and what facilities are shared
Link here for Government interpretation of HMOs
But if truly a HMO then VAT should not be claimed from these buildings -
Does that help?
Let em know if I can assist further
Then this is a guest house not an HMO - so I agree with your analysis of the situation and VAT should be charged (and then VAT suffered can be reclaimed)
For the guest to be renting the room - NO services at all even as an option - its fine that the sheets are changed and even that its one or two nights but this does not appear to be a normal rent with the standard tenant
Let me know if I can assist furtehr but if you have all you need - it would be appreciated if you could rate me for the level of service I have supplied (or click accept)