What on earth has being a landlord got to do with VAT I hear you say? Well, furnished holiday lettings (FHL) are generally standard rated for VAT (VAT Notice 709/3) and it becomes compulsory to register and account for VAT once the owner exceeds the VAT registration threshold. Of course, the vast majority of those providing furnished holiday lettings will never exceed the registration threshold, but there are two groups of people we should watch carefully. My first group is the accountant/solicitor/ architect sole trader - indeed, anybody who has a VAT registration in their own name. If the owner of an FHL is already VAT registered, then all his rental income from the FHL will be standard rated even if the business for which he originally registered for VAT has no connection with the FHL.
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