How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7290
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

In addition to our own house we own a flat (for our

This answer was rated:

In addition to our own house we own a flat (for our retirement) that is currently let to a tenant though a leading estate agent, which now charges 12.5 percent Commission (up from 10 percent) on the monthly rent. Is the agent correct in charging 20 percent VAT on the Commission element as well as on the agreed rental fee? I have been unable to find definitive guidance and would highly appreciate an unambiguous answer. Thank you.
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

 

The % VAT on the commission element is correct.

 

If the rental fee is for collecting rentals on your behalf then the VAT on that is correct also, sorry.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.