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An easy question?

I live in a block of flats - I'm waiting for an answer from the managing agents about this but they are slow and I need to figure this one out quickly, so maybe one of you wonderfully knowledgeable people in this group could help answer this question.

The building is being painted this year and the estimates from the contractors do not include VAT - when we come to pay do we (the leaseholders) have to pay for our portion of the estimate before or after VAT? I.E. do the managing agents claim back the VAT on our behalf, thus meaning we do not have to find the VAT portion of the payment - the cost difference is roughly 200 for each flat if it includes VAT or not so I'd really like to know!

Thanks for any help

Reply to
<nospam
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The short answer is "You will have to pay the VAT".

The managing agents won't be paying the bill, your managing company will be paying it.

You can't register for VAT because you aren't a trading company. That is good for the most part because you don't pay Corporation Tax (except on Bank Interest).

Sorry.

Reply to
Troy Steadman

Incidentally...

...they won't know the answer to this so will be getting their accountants to write *them* an answer, hence the delay. At £60-£200 per hour It is quite possible your query will up the Management Fees by a 3 figure sum. It might benefit you all in the future for residents to channel these "easy questions" through one person.

Reply to
Troy Steadman

Perhaps I can cheer you up.

Very few blocks of flats operate in this way, asking for big payments for new roof, decorations and so on. Indeed it is almost impossible to do so because tenants may not have the money. You cannot wait for a new roof.

So most operate a "sinking fund". Of the 300 a quarter you pay (or whatever it is) 100 will be put aside for such eventualities, also to tide the block over if (say) Flat 1 defaults on his Service Charges and has to be dragged through the courts.

Hopefully yuo might find there is *nothing* to pay.

Reply to
Matthew Church

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