VAT exemption for domestic service charges – Revenue and Customs Brief 6/2018
HMRC have published Business Brief 6/2018 stating that, with effect from 1 November 2018, HMRC will require all property management companies to account for VAT at the standard rate on fees they charge landlords for providing common services to the occupants of residential property. Management companies cannot use ESC 3.18, under which landlords who provide such services directly may treat mandatory service charges paid by the occupants as exempt from VAT.
These changes are likely to affect:
- property management companies
- housing associations
- property owners
- anyone offering similar services connected with residential dwellings
HMRC’s Business Brief can be found here for further information. VAT Information Sheet 07/18 can also be used to provide guidance on applying Extra Statutory Concession 3.18 on or after 1 November 2018.
If you feel these changes may affect you and your business, please contact a member of the Centurion team on 01633 415390 or email@example.com to discuss the possible options available to you.
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