Pros and Cons of having a property registered for VAT Yt subs
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Shaz answers a question from his Facebook community, entrust property tax experts, where you can find lots of great information being shared on tax and property.
\\nThe question is one that anyone who is investing in property will want to have the answer to – what are the pros and cons of having a property registered for VAT?
\\nShaz shares great information about what happens and when in the property cycle and how opting in for tax works.
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KEY TAKEAWAYS
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- Generally, the reason you are paying VAT is because it’s a new property or someone in the past has refurbished a commercial property and registered it for VAT \\n
- HMRC will ask for VAT to be charged on rental going forward \\n
- It depends on whether your tenant is registered for tax as to how open they will be to paying VAT, but it’s not an option \\n
- When you sell the property, you have to charge VAT on the disposal \\n
- The person buying from you can either register for VAT and claim it back with the cycle continuing or they don’t claim but they have to pay it \\n
- When you are buying you have to pay the VAT \\n
- You also have to pay stamp duty land tax on the VAT element \\n
- As the owner, if you are VAT registered then you can claim back on work completed \\n
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BEST MOMENTS
\\n‘It either costs you or them 20%’
\\n‘Usually, people opt for tax and the cycle goes on’
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VALUABLE RESOURCES
\\nshaz@aaa-accountants.co.uk
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ABOUT THE HOST
\\nShaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
\\nShaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
\\nHe is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
\\nYou can find Shaz on:
\\nThis show was brought to you by Progressive Media
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