Hi everyone
I've got a LTD company dealing with property let and management, in which I receive rent from tenants and pay it to the landlords, less my letting/managing fees. The company also manages HMOs (houses in multiple occupation) in which individual rooms are let out, bills inclusive, so my company is responsible for all the bills and council tax, etc.
Now, the money coming in as rental income for an individual property may be around £4000pcm. I'd be paying the landlord £3000pcm and £500 go towards the bills etc. So my actual income on the individual property is merely £500pcm. However, as I understand, its the £4000 which counts as the determining figure for the turnaround, not the £500pcm. Am I correct?
Or will it be possible to consider £3000 of the £4000 not actually belonging to the company, as I'm literary collecting rent on behalf of the landlord and passing it on, and consider my commissions as the income/turnaround?!
As my company grows and more clients join, the turnover will very quickly rise up above the VAT threshold. So once I've registered for VAT, since the residential property rental income is exempt from VAT, can my company claim back the VAT paid for the utility bills, as the company will essentially be the end user of those services? Could this generate some revenue itself, as I will be claiming back VAT paid for utility bills etc. but not charging them on tenants? So I've paid VAT but not received any, so I can claim what I've paid back.
Many thanks
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