A new letting agency client has come to us and they are approaching the VAT threshold.
Part of the service they provide is to arrange for repairs/cleaning on behalf of the landlords. This is then deducted from the rent recieved from the tennants (along with their management fee) with the balance being paid to the landlord each month.
There is no markup on the costs, but the invoices are in the letting agency name.
Do these recharged costs count as part of the VATable turnover? My feeling is not as they are merely acting as agents for the landlord and all payments come from the client account, but I don't want to miss something.
Thanks in advance