I have two commercial properties.
The larger one is opted to tax (it needed to be when purchased for TOGC) and brings in rental of £10k + vat.
The smaller one is not opted to tax, as we converted it after purchase, and it is possible tenants would not be vat registered in all cases.
The smaller property is only recently bringing in rent on an ad hoc basis - obviously with no vat charged. Expected rental probably no more than 2k per year.
There are some ongoing costs for the smaller building that do have VAT (utilities etc). As the rent is on an ad hoc basis I am retaining the bills as landlord.
I have read the de-minimis rules a few times, but have some kind of mental block, I am obviously not understanding something.
1) Can I claim the VAT on the utilities on the smaller building?
2) Do I have to do an annual re-calculation?
Total VAT is probably less than £200 per annum.