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Letting Agent Charging VAT on holding deposit

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  • Letting Agent Charging VAT on holding deposit

    I have agreed to rent a flat, but unsure whether the agent are within their right to charge VAT for the holding deposit. This is what they have said via email:

    "For us to begin processing the tenancy and take the property off the
    market, we will need to take two week's rent (£700) plus an
    administration fee of £95 + vat (£223.26) as holding deposit. Total
    amount due is £923.26. The amount of £700 is not a fee and will go towards the 1st months rent.
    The holding deposit can be paid at our office or by debit/credit card
    over the phone."


    Any advice would be appreciated.

    Tom

  • #2
    Re: Letting Agent Charging VAT on holding deposit

    So far as I understand it, you shouldn't be charged an admin fee, as the letting agent gains their fees from the landlord.

    Comment


    • #3
      Re: Letting Agent Charging VAT on holding deposit

      I agree with Brian. Admin fees are usually charged to the landlord. At least that's what happens with me, I have three buy-to-let properties and I pay the agent's commission and any extra costs. I wouldn't be happy if I found they were double billing.

      You could make a few enquires at other agencies. Tell them your'e interested in renting a property from them and ask what the up-front charges are. At least then you'll know is such admin charges are typical or not.

      Comment


      • #4
        Re: Letting Agent Charging VAT on holding deposit

        i thought the issue was about VAT? and the agent charging?

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