N/A - Council Garage Rents

Honest John Back Room » Motoring discussion
View Threaded
Wed 10 Nov 2010 18:00
N/A - Council Garage Rents - RaineMan

Like many people I rent a garage from the council. I do not keep a car in it as if the car is over about 5’ 3” wide I cannot get out the door – the garage is narrow rather than me being wide! Over a decade ago I was capable of climbing out the front window “Dukes of Hazzard” style but sadly no longer. So it houses a non-running motorcycle, pedal bike, lawn mower and assorted paraphernalia. What infuriates me is that being classified as a homeowner I have to pay VAT on the rent whereas council tenants in the next road do not. This means nearly an additional £2-00/week when VAT goes up in January. The thing I cannot understand is that an item or service should be either VATable or not. So why do one group of people pay VAT on their rent whilst others do not?

Reply | Report as offensive | Link
Wed 10 Nov 2010 20:25
N/A - Council Garage Rents - track
Have you tried claiming a rebate from the council? what they are doing surely comes in as some form of discrimination and councils dont like that word. Also speak to inland revenue and customs or whatever they call themselves these days. If a company charges VAT on a product it should be done across the board regardless of client unless said client can provide proof of being a vat free consumer. Even then they are still put through ona special form of invoice for zero VAT. We occasionally have to do it at work for people exporting our goods, they provide us with a special VAT registration number. Pretty certain council tenants arent issued with these.
Reply | Report as offensive | Link
Sun 14 Nov 2010 18:30
N/A - Council Garage Rents - Jock70

Keep us posted RaineMan.

I have a garage rented from my local Council (and pay VAT on the rent) and didn't realise until reading your post that council house tenants were not paying VAT on their garage rent.

Just checked their website and it says "The rent shall be £XXX per annum together with VAT thereon (under exception of Council housing tenants who are exempt from VAT liability) payable quarterly in advance."

Very interested in finding out whether this is allowed.

Reply | Report as offensive | Link
Sat 20 Nov 2010 08:33
N/A - Council Garage Rents - Halmer

I suspect that it's because for Council tenants, the house rental forms the main part of the supply from the Council (which isn't VATable) and the garage rental only a small part (in rent terms) so they have discretion not to charge VAT.

For private tenants. 100% of the supply is VATable; hence you have to pay it!

Reply | Report as offensive | Link

If you cover no more than 100 miles per day and have easy access to a charging point at home or work, then an EV is ideal for you.

Is an electric car right for me?