VAT threshold for holiday let business

[bigbob]

My wife and I have 2 existing studios which we let out as serviced accommodation.We are currently converting a buy to let house to a holiday let and intend to use an agent to manage it. The agent has given us 2 options

- option one is that she will charge a flat fee on bookings
- option two is that she will give us a guaranteed sum irrespective of actual bookings, she will pay the bills

We prefer option two because it's easier for us but how would this work in terms of the vat threshold? could we simply add the guaranteed amount to our current holiday let turnover to determine if we are over the threshold or is this not allowed and we must take the flat fee on bookings approach ?

thanks for any views on this

[les35]

Option two sounds like your Agent is actually acting as Principle. so the value of your supplies is the amount she pays you. You will need to tease out that this is what she intends.