Do I need to be VAT registered?

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I intend to rent sublet some properties out. 20 in total each around £450pcm. Therefore my turnover is £108,000 (well above thresehold). But rental commitments to landlord are around £90,000.




  1. The VAT threshold is based on your income, regardless of expenditure...

  2. If you are ONLY renting out domestic properties, I don't think you have to be VAT registered and it you are VAT registered the rent will be charged out at "0" rate, but check with you local VAT office.

  3. If your turnover is £108,000 then i think the answer is yes, but all you have to do is ring the tax office to ask.

  4. Are these commercial or residential properties? There is no VAT generally speaking on property, although of course there are exceptions. Depending on your tenants and your input VAT you may actually wish to 'opt to tax' anyway.

    The VAT registration threshold is £67,000 (if you think either you will make taxable supplies of that or more in the next 12 months or you have received in the last 30 days).

    It is based on turnover not income but the issue is 'taxable supplies' and that depends on the circumstances discussed above. Most likely scenario is you are not making taxable supplies and thus are nowhere near the VAT registration threshold.

  5. VAT threshold is around £60K but I think property is VAT excempt

  6. Yes you do.

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