Industry comment, updates and news from the Websters team.

Incorrect VAT Costs Barrister Landlord a Bundle

Thursday, November 28th, 2013 in Commercial, Landlord, Managing Agent, News, Residential, Service Charge

A landlord often supplies services, other than rent, such as insurance, water and electricity. Some services may not be standard-rated as a stand-alone supply and Pearson has reported that barristers, who were tenants at the Middle temple, found that problems arose when their landlord supplied a ‘mixture’ of services. VAT law has a preference for treating ‘bundles’ of supplies as a single supply where splitting them would be regarded as ‘artificial’. When a mixed supply is deemed to be a single supply, the predominant supply will determine the VAT rate charged.

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