How rent, VAT and tax work on a commercial let — cadence, quarter days, no Section 24, and CRAR.
This article covers how rent, VAT and costs work on a business property. Rent follows the lease, usually by the quarter, and VAT is shown on top. For the lease terms behind it, see The Lease tab.
Open the property's Finance tab. The By quarter chart counts in quarters for a shop paid quarterly or yearly, and Rent status sits below the figures.
Press Rent status to open the demands.
The lease says how often the rent falls due. You set it as How it's paid on the lease, and the Rent figure shows it, such as £6,125 /qtr.
Each row in the Payments list is one demand, by its due date. Arrears are counted from that date, not from a day of the month. If no cadence is set, the property has no demands at all and the Rent figure asks you to set one.
If you have opted to tax, every demand carries 20% VAT. The top of Rent status shows the total the occupier pays and the VAT inside it, for example includes £1,225.00/qtr VAT, then your income is the rent before it. Your records and tax figures use the rent without VAT. Abodient does not produce VAT invoices or a VAT return.
Change the VAT setting under Lease terms on the Lease tab.
Press Chase rent in the Chasing box. Abodient drafts the message from the amount owed and how long it has run. For a business tenant the draft refers to CRAR (Commercial Rent Arrears Recovery), never the Section 8 route used for homes.
