VAT and Maintenance Reminder
Donna Weetman, Maintenance and Development Manager, PAD4U Letting Agents Manchester writes:
We want to remind our Landlords of our Invoicing process which changed in April 2009, as some of you are still not aware of the change and savings that can be made.
What has changed?
Repairs and Maintenance will appear on statements with the contractor’s company name.
In addition invoices from the contactor for each repair/maintenance tasks will be forwarded to the landlord by PAD4U.
Why we made this change?
There are a number of reasons why we made this change:
Transparency. We have been awarded ARLA (Association of Residential Letting Agents) status; we are currently already members of the NAEA (National Association of Estate Agents). ARLA’s preferred accounting practice is that landlord’s receive invoices from repairs/maintenance if carried out by an external contractor.
Streamlined Administration. The above process will help streamline our administration ensuring that we keep our costs low and therefore ensure our charges remain low to our landlords.
VAT Savings. Where contractors themselves are not VAT registered we will be able to pass on this saving in VAT due to the new accounting procedures.(Please note this applies to maintenance work and not project managed refurbishments).
Tax Investigations. Those unlucky enough to be subject to tax investigation will find the process far easier if they have invoices for repairs and maintenance to show the tax man
This means PAD4U are even more competitive on maintenance work, whilst still maintaining the quality of our work.