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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 8754
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In addition to our own house we own a flat (for our

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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 3 other Tax Specialists are ready to help you

Thank you for your support.