Hi all,
Friend runs a business - basically buying properties for buy-to-let purposes
Her accountant advises against voluntary registration for VAT because she would have to charge VAT on the rents ie increase by 17.5% OR pay VAT element from rent at current levels thus reducing her net proceeds.
Is accountant correct ie that rents are a vatable item? I thought registration would benefit her as she an reclaim most/all of her input VAT, but if the above is correct, it would not actually be the right thing to do
Any advice appreciated
Cheers