Hi I am setting up a letting agent and evaluating software. Could someone advise how I would account for rents collected for landlords which are then dispersed to the landlords minus our fee. I am vat registered but obviously the landlords and tenants should not have to pay vat on the rent collected. the only vat applicable should be to the management fee to the landlord
Hi Richard,
The general approach for a letting agent is to record tenants as Customers and landlords as Suppliers. Then create invoices and purchases invoices when the rent becomes due, and purchase credit notes to record your lettings fees. See this page for a detailed example:
https://www.solaraccounts.co.uk/forum/topic.php?TopicId=669&Posts=1
Regards,