Reply To: VAT for Semi-independent accomodation providers

Forum Categories VAT REGISTRATION VAT for Semi-independent accomodation providers Reply To: VAT for Semi-independent accomodation providers


Good Afternoon Trevor,

I cannot express my gratitude enough in words, merely for the effort, you have taken to respond and ask further questions. I joined the VAT forum and was sceptical about the quality of responses I will get out. But I am convinced this is the best platform and will recommend it to all my friends.

Coming back on my queries, I will explain further and hopefully, you can share more of your wisdom with us.

The friend’s company are only accommodation providers without any support element, the company provides accommodation for +16 yrs up to 21 yrs. They are looked after children or UCAS (asylum children) some may have status and some may not have status. 

The LA sends a referral to the company, the company looks for properties in the preferred areas, the company gets properties from estate agents, landlords and get a tenancy for 1 Yr or 2 yrs. Depending on how the property is provided, some are furnished and some unfurnished. Some include bills and some do not include bills.

Once properties are identified, the company provides details of property and costings to the LA placement commissioning team. The placement commissioning team shares this info with social workers and young people. The company sends a breakdown of cost, that includes all bills etc. The agreement is usually for a year, but it keeps extending until the young person gets permanent social housing. 

The company later furnishes the property if required, the company also looks after council tax, utility bills, wifi etc. In some cases the Young person pays bills.

If accepted the company provides keys to Young person and get the young person to sign an excluded licence agreement and house rules. Which states the cost per week,  dos and don’t of the house. Also specifies about the eviction process if the house rules are breached.

The company charges a weekly cost, which is paid on a monthly basis by LA. Usually calculated for 52 weeks. Most of the properties provided are on block contact, minimum 1 year. In case there is an eviction, LA will replace with another young person to avoid paying for voids.

The company only takes care of accommodation and any maintenance issues of the property. There is always another organisation involved that takes care of the support element for the young person. So my friend’s company is only liable for property and its maintenance.

Until now no VAT has been charged, but the company is getting closer to the VAT threshold, hence wanted to clarify if the company is exempt from VAT?

I tried my best to explain, what the company does. However, I may not have expressed clearly for understanding. In that case, excuse my ignorance and way of writing.

If it will be easier, Trevor you seem to be a reasonable person and with in-depth knowledge.

I don’t know if it’s appropriate to ask? But I will ask anyway.

Trevor would you be kind enough to provide my friend with an appointment over the phone or in person. To express all his queries and doubts about the company and VAT information.

Your time is valuable and my friend is happy to pay an appropriate consultation fee for your time and expertise. As he wants to do the right thing. There are people around my friend with little knowledge and who provide bad advice. Hence he asked me to check on a reliable forum.

If you feel I have crossed the line. Trevor or moderator of the forum, please let me know, so I don’t do this mistake again.

I look forward to your valuable feedback and comments.

Thank you