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VAT on house managers’ wages will cost leaseholders £50m a year, says Rendall and Rittner

November 16, 2018 By

Changes to impose VAT on the salaries of house managers and concierges in blocks of flats will add £50 million to service charges, Rendall and Rittner tells LKP.

Founder Duncan Rendall said: “This is a huge own goal by the Government given their stated objectives of trying to reduce the cost of leasehold.

“The capitalised impact of the change is north of £0.5billion.”

Click image for full guidance on VAT rules

LKP has asked Rendall and Rittner for an analysis of its figures. We are also unsure what the capitalised impact is based on.

We are also asking other leading property managers what they believe will be the impact, as well as ARMA.

All property professionals involved in making the changes are invited to contribute to this post

LKP / BetterRetirementHousing.com have been receiving a steady stream of correspondence from retirement sites, where FirstPort warned of the changes last month.

FirstPort advice to retirement leaseholders of the change, which came in on November 1:

And here is FirstPort’s full document:

VAT for site-based staff – FAQ

Related posts:

VAT added to cost of house managers from November Freemont Property Managers in show-down over RTM at Grace Darling House No porkies at Sandbanks, but is ending the in-house manager going to save money? Default ThumbnailFraudster managing agent gets 30 months jail after using leaseholders’ cash to fund high life in Chelsea
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Professional services

Managing agents

Big managing agents, which manage flats, are big because they have got business from developers or large-scale freehold owing companies.

Such as Proxima or Fairhold, which are administered through Estates and Management and are ultimately controlled by a trust in the British Virgin Islands.

Doubtless they are very obliging.

Not a single one is big through consumer choice.

Managing agents accredited to the Leasehold Knowledge Partnership, on the other hand, want business from leaseholders. Many are former leaseholders. Many have spoken at our Parliamentary meetings urging politicians to clean up the sector.

All have signed undertakings of good practice and have provided extensive references … from leaseholders.

They can also hand-hold leaseholders through right to manage at minimal cost.

Contact Sebastian O’Kelly at LKP for further details: sok@leaseholdknowledge.com, 07808 328 230

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Epsom, Surrey

 

jonesassociates

Macclesfield

 

 

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To contact Campaign against retirement leasehold exploitation you can use the form here

Comments

  1. John Wilson says
    December 10, 2018 at 8:10 pm

    Now its the Tax man wanting more of our pension reserves with another stealth tax using VAT as the cover. The government tell us to plan for retirement with one hand while adding to the burden with the other. Yes, its good to have someone to look after the gardens, change a light bulb when needed, but now we have to pay an extra 20% on our service charge for the privilege.