By Debbie Franklin, Director of Tax and property tax specialist If your strategy is Rent to Serviced Accommodation, it is likely that you fall within the TOMS scheme for VAT. This will allow you to measure your margin (turnover less all direct costs) against the £85,000 VAT registration threshold rather than turnover. If you do need to be VAT registered you pay VAT on the margin. Just be sure that the property owner remains responsible for the repairs to the fabric of the building. If you meet the criteria, TOMS is automatic, there is no need to apply.