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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4810
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My Landlord has charged every resident in my block (120 of

Customer Question

My Landlord has charged every resident in my block (120 of us) V A T at 20% on Communal Electricity used in the block since 2012/2013 and although I have advised them of the error and requested a refund of the overcharged amounts I have received no indication of when I will receive the amounts due to me.
I have been advised that the overpayment has been requested from the supplier but I consider that due to the 'Landlord's' error he should be funding the payment without delay. The amounts due to every resident are I the order of £29 each per year since Hyde Housing Group became our landlords in January 2013 and there are some residents who do not wish to lend money to Hyde and some who can ill afford to do so.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

Yes, as we are all aware the supply of electricity, although subject to VAT, is at a reduced rate. VAT Notice 701/19 [] makes it perfectly clear that communal passages etc qualify for supply at the reduced rate of VAT.

You should draw Hyde Housing Group's attention to to the current legislation and should they fail to adjust their invoices then report their antics to HMRC and also settle their invoices at the correct rates of VAT. Should they be so foolish as to attempt to sue on the outstanding debt or take evicition proceedings then the matter can be struck out by the Court before their case even gets going.

I trust it will not come to this. I do know of a landlord who charges 20% VAT on electricity supplied, but since their customer is registered for VAT it is merely claimed back quarterly and the accounting answer a lemon. However, that option is not available to residential tenants.

At present I suggest that you are using the correct approach to your landlords. Some of these organisations are notoriously ignorant of VAT legislation or simply deliberately obtuse and onstructive hiding behind what they concieve to be the law on the matter.

I do hope that my answer has been of assistance to you with your difficulties,