Landlords who are preparing their quarterly invoices in advance should remember to recover VAT at 15 per cent from the December quarter day until December 31st 2009 and then revert back to 17.5 per cent VAT after this date.
Paul Rogers, an Associate in the commercial property team at Stephensons said: “Landlords who overlook this could encounter cash flow issues in trying to account for VAT they have not recovered. It could also lead to time delays and further unnecessary cost to their management expense if they have to explain the error to tenants and try to recover the shortfall.”