I have a new client who has just sent me his spreadsheets. He is a VAT registered sole trader and has furnished holiday lettings as well.
He is charging VAT on the weekly holiday rents and my first instinct was that this must be wrong. Reading the VAT Notice on Hotels and Holiday Accommodation (709/3) it looks like he might be right after all.
Can anyone confirm the right treatment as I have never encountered this before.
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Easily done
I have a client doing this with flats and it will not take that much to get over registration threshold at circa £90 a night off season going up to £200 a night peak season;4 flats can pretty much get you to turnover threshold without having another activity if kept pretty fully let.
Can also confirm vat is an issue for this activity (whilst miy client is still below threshold-three flats) I know of another operator who is registered (much to his disgust); whilst getting vat back on booking fees and laundry services is pleasant losing a 1/6th of turnover is not so hot.