Letting Agent Charging VAT on holding deposit

[Londontom]

I have agreed to rent a flat, but unsure whether the agent are within their right to charge VAT for the holding deposit. This is what they have said via email:

"For us to begin processing the tenancy and take the property off the
market, we will need to take two week's rent (£700) plus an
administration fee of £95 + vat (£223.26) as holding deposit. Total
amount due is £923.26. The amount of £700 is not a fee and will go towards the 1st months rent.
The holding deposit can be paid at our office or by debit/credit card
over the phone."

Any advice would be appreciated.

Tom

[brian]

So far as I understand it, you shouldn't be charged an admin fee, as the letting agent gains their fees from the landlord.

[OnTheLookOut]

I agree with Brian. Admin fees are usually charged to the landlord. At least that's what happens with me, I have three buy-to-let properties and I pay the agent's commission and any extra costs. I wouldn't be happy if I found they were double billing.

You could make a few enquires at other agencies. Tell them your'e interested in renting a property from them and ask what the up-front charges are. At least then you'll know is such admin charges are typical or not.

[canton]

i thought the issue was about VAT? and the agent charging?