ACCOUNTANCY practice Bentleys, in Chorley New Road, has welcomed news of a potential boost for housing charities as the result of a recent VAT Tribunal decision.
Following the case, voluntary and not-for-profit organisations, who are often forced to house individuals in bed and breakfast accommodation for long periods of time, are set to make substantial VAT savings.
At present, VAT charged on accommodation when a guest has stayed for a period longer than 28 days, can be charged at a lower rate.
Until now, this reduced rate does not apply when a third party, such as a local authority or charity, is responsible for settling the account.
Owing to the Tribunal decision, the VAT reduction will now apply in all cases, no matter who is responsible for paying the bill, so long as the occupant stays in the accommodation consecutively for 28 days or more.
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