When a letting agent asks you to add on 10% plus VAT

[WaterTight]

To your bill to them, does that mean you add on 12% of your total or that you add 10% of your total plus 20% of that 10%?

Only worked for one before and they never asked about VAT.

 

[SafeGasInstall]

10% on top of final bill whitch willbe let say
from 300 inc vat (original bill )
to 330 inc vat

 

[mountainman]

Never had that before, they usually ask for cash.

 

[leelister6]

Add 10% then add vat i.e. £300 original bill +10% = £330 + vat = £396

 

[markfxy]

make sure they invoice you for it

 

[WaterTight]

They cancelled anyway but I'm still confused. I'm not VAT registered so I guess it's the Letting Agencies VAT I'm adding on? So that would be VAT on their 10% wouldn't it? Rather than 10% on total. Or maybe they were presuming I charge for VAT?

 

[REDSAW]

it is actually illegal so whatch your back imo.
if they want 10% then tell them to invoice their customer the difference.

 

[WaterTight]

Is it? I've only worked for two and both have asked me to add 10%.

 

[REDSAW]

Not sure of the inns and outs but just enough to know where to draw the line.
If your invoicing for their 'cut' then you are employing their services and paying them a commission (something like that). Hmcr will be breathing down your neck.
Tell them, you will invoice what you charge only.imo.

Or, if they want 10% on say £100 then up your bill, charge them £120 and tell them you have to pay tax on your invoices-take it or tell them bill yourself, dont do back-handers!!!!.

 

[tamz]

When a letting agent asks you to add on 10% plus VAT they are working you from the back.

I agree with Redsaw. Ring up HMRC and ask for advice :lol: