UK Landlord Forum / Life

The agent Ive been using for many years has charged me VAT every time a tradesman has carried out maintenance at a property. I have discovered that the majority of the tradesmen are not registered for VAT. Their invoice goes to the agent and the agent t hen passes it on with VAT added. ( I dont see the original invoice) Is this legal? The agent doesnt pay VAT to the tradesman, he obviously claims my VAT back on his accounts. Seems fishy to me.

Yes, it's lawful.  Typically, your contract is with the agency, and the agency charge you for maintenance.  They subcontract out the work.  But the agency will be registered for VAT so they have to charge VAT, even if their subcontractor isn't VAT registered.

Many but not all agencies charge more for maintenance than they pay their subcontractor.  That's also lawful.

The solution is not to use a lettings agent.  The vast majority of them are hopeless.

Thanks, that does clarify it. The agents actual employee is a mature, experienced lady (very persuasive) and fundamentally good. Its why I dont even attempt to ditch them. However, they have charged thousands over the years for collecting the rent into their bank accounts every month! , anyway, thanks again!

I'm mature, experienced, tolerably persuasive, and good at this.  Could you pay me thousands as well?

Thats a matter of opinion Mr Mortimer, but taking it all in all, weighing up the good with the bad, generally speaking...... NO! Actually, you have made a good point, and reminded me of a problem I did have with this agent. Ill post another thread on that one now. Thanks....