VAT exemption for domestic service charges – Revenue and Customs Brief 6/2018

HMRC have published Business Brief 6/2018 stating that, with effect from 1 November 2018, HMRC will require all property management companies to account for VAT at the standard rate on fees they charge landlords for providing common services to the occupants of residential property. Management companies cannot use ESC 3.18, under which landlords who provide such services directly may treat mandatory service charges paid by the occupants as exempt from VAT.

These changes are likely to affect:

• property management companies
• housing associations
• developers
• property owners
• landlords
• anyone offering similar services connected with residential dwellings

HMRC’s Business Brief can be found here for further information. VAT Information Sheet 07/18 can also be used to provide guidance on applying Extra Statutory Concession 3.18 on or after 1 November 2018.

If you feel these changes may affect you and your business, please contact a member of the Centurion team on 01633 415390 or emailus@centurionvat.com to discuss the possible options available to you.

Centurion VAT offer an independent and expert source for VAT advice. Based in Wales we work across the UK and have overseas clients who need VAT advice and support when setting up in the UK.

VAT advice for organisations who find themselves at an unfortunate juncture with UK VAT for whatever reason, is where we help out. VAT sensitive sectors such as Universities, Further Education Colleges, Housing Associations, Charities and Corporate businesses where VAT can be a real cost are where we specialise. Exporters under challenge from HMRC on Export Evidence; a property development where VAT exempt activities are complex; a Local Authority or a Leisure or Cultural Trust – whatever your sector, when you need to get expert VAT advice Centurion is where you’ll find it.

An award winning VAT team is what you’ll find at Centurion – evidence of the quality of our VAT advice and service can be showed by our long term retention of clients. Whatever your VAT issue – BREXIT, Making VAT Digital, Partial Exemption or Property then do make contact with a call or email emailus@centurionvat.com