VAT on accommodation

[Message #1]

Hi, hope someone can enlighten me...

I have a serviced apartment business trading as a Limited Company and have just completed my first year of trading and stayed under the VAT threshold. I have recently taken on an additional apartment and anticipate heading towards the threshold quick quickly.

I understand (just by hear-say from other providers) that the following applies to serviced accommodation, but cannot find any official information on this... any ideas:-

17.5% for the first 28 days then 3.5% thereafter

Is it possible to operate more than one Company to avoid VAT Registration or is this frowned upon or not legal?

Polly

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