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Vat On Self-Storage Rentals


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I rent 50 square feet of storage space from Safestore in Southampton for an increasingly steep £175 per month. I've just received a letter from them informing me that VAT @ 20% will be charged on self-storage rentals from October. I can't help thinking that (i) I need to store my stuff somewhere else and (ii) this is going to put just that bit more pressure on people who are trying to defer moving to a bigger house by keeping their stuff in storage.

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why do people store stuff?

I just ebay it or, failing that, freecycle it - cheaper to get rid

+1

Unless you've got a temporary need (eg homeless for a few weeks between house moves) if you've got stuff in storage it probably just means you've got too much stuff.

"Things you own end up owning you" - Tyler Durden

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'We'll flush them out, bit by bit, those pesky STRs. We'll make their savings worthless. We will charge them VAT if they have the temerity to store furniture. We'll launch a series of initiatives to make unaffordable housing seem affordable. We will not rest until everyone's in debt. We are doing our utmost to ensure that private renting is as uncomfortable as possible and social housing becomes non-existent. The least we can do for our donors is to help hard-working banks and big builders.

Grant Shapps, August 2012

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A friend of mine was paying £20 per month for container storage for some items of furniture they no longer had the room for but might want to use at a late date......nearly six years on they were still paying it, more to the point they had forgotten what much of it was.....total cost = nearly £1400 in storage fees. they could have sold the lot at the outset put it in a savings account and bought new when required, they don't think the total value of the items is worth what they have laid out in costs so far. ;)

Edited.

Edited by winkie
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I rent 50 square feet of storage space from Safestore in Southampton for an increasingly steep £175 per month. I've just received a letter from them informing me that VAT @ 20% will be charged on self-storage rentals from October. I can't help thinking that (i) I need to store my stuff somewhere else and (ii) this is going to put just that bit more pressure on people who are trying to defer moving to a bigger house by keeping their stuff in storage.

Can't some clever accountant on here come up with some loophole? Reclaim the VAT through some offshore company routed through Ireland or sommat?

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I rent 50 square feet of storage space from Safestore in Southampton for an increasingly steep £175 per month. I've just received a letter from them informing me that VAT @ 20% will be charged on self-storage rentals from October. I can't help thinking that (i) I need to store my stuff somewhere else and (ii) this is going to put just that bit more pressure on people who are trying to defer moving to a bigger house by keeping their stuff in storage.

I've been renting a self-storage last year on the basis "VAT included", are you saying I was fooled?

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A friend of mine was paying £20 per month for container storage for some items of furniture they no longer had the room for but might want to use at a late date......nearly six years on they were still paying it, more to the point they had forgotten what much of it was.....total cost = nearly £1400 in storage fees. they could have sold the lot at the outset put it in a savings account and bought new when required, they don't think the total value of the items is worth what they have laid out in costs so far. ;)

Edited.

that's what it boils down to

cheaper to give away than pay for storage

do what squirrels do - they leave what they don't want

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Don't think so.i read about this the other day and was trying to cast my mind back to 2005 when i used some storage as I thought I remembered it being priced +VAT.

I have paid VAT on a storage container and a garage.

I expect it is a case of the storage company's turnover reaching the VAT threshold.

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I have paid VAT on a storage container and a garage.

I expect it is a case of the storage company's turnover reaching the VAT threshold.

I had to go and pay to get an ex-girlfriend's stuff out because she couldn't afford to pay the bill at one of those Safestore type places and I can remember the receipt saying something like 'not a vat receipt as no vat has been charged on this transaction'.

I would have thought by the size of the place they'd easily be over the threshold by loads so there must have been some exemption that's now been abolished.

I would guess, like the stuff I picked up and filled a Sprinter van with :angry: , that most of what's stored in these places is just pointless crap that's unlikely to be used again. So many things like books, photos and DVDs can just go on a memory stick these days and they represent a big chunk of it..

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I have had stuff in storage due to relocating internationally. For example, did not want to take a old 17th century oak table to a humid, hot country where it might warp or be eaten by bugs.

but yes, storing IKEA stuff would be madness....

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"Things you own end up owning you" - Tyler Durden

Here's another snippet, one that's stuck with me for a decade or three. It's from Jerome K Jerome's Three Men In a Boat:

'Throw the lumber over, man! Let your boat of life be light, packed with only what you need - a homely home and simple pleasures'.
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I had to go and pay to get an ex-girlfriend's stuff out because she couldn't afford to pay the bill at one of those Safestore type places and I can remember the receipt saying something like 'not a vat receipt as no vat has been charged on this transaction'.

I would have thought by the size of the place they'd easily be over the threshold by loads so there must have been some exemption that's now been abolished.

I would guess, like the stuff I picked up and filled a Sprinter van with :angry: , that most of what's stored in these places is just pointless crap that's unlikely to be used again. So many things like books, photos and DVDs can just go on a memory stick these days and they represent a big chunk of it..

Previously storage by a company on your behalf charged VAT.

Self storage VAT free - now abolished - VAT now payable at full 20%!!

Government seen another area where it can cow more money back from Joe taxpayer.

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I've been renting a self-storage last year on the basis "VAT included", are you saying I was fooled?

It's to do with the way storage companies charge for the space: here's a link to the HMRC note from the last budget – http://www.hmrc.gov.uk/budget2012/tiin-4801.pdf

The price seems steep anyway. WIth some of these companies you can play storage-space arbitrage. They may have stopped this but when I first used mine (Access) they had an online booking system that let you look at the price for individual units and some with funny shapes or just unpopular capacities would be much lower in price than the others. They always ramp up the price over time counting on inertia stopping people from moving to a competitor. So, if you do want to keep it going for a while, it pays to move around - or just deciding that you don't need the stuff after all.

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I have had stuff in storage due to relocating internationally. For example, did not want to take a old 17th century oak table to a humid, hot country where it might warp or be eaten by bugs.

but yes, storing IKEA stuff would be madness....

Not really.

The "new" IKEA stuff does not magically tun up at your new abode the day that youy want it (like the stuff from store can).

You have to order it, wait for delivery and then put it all together. This doesn't sound like a difficult task when you are adding one item at a time, but it's shed load of work when a whole housefull of kit furniture turns up at the same time.

tim

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Not really.

The "new" IKEA stuff does not magically tun up at your new abode the day that youy want it (like the stuff from store can).

You have to order it, wait for delivery and then put it all together. This doesn't sound like a difficult task when you are adding one item at a time, but it's shed load of work when a whole housefull of kit furniture turns up at the same time.

tim

Mine magically turned up, with little IKEA men who put most of it together snap quick for a miniscule fees. That's not the UK though, so there you go :P

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  • 5 months later...

The theft of valuable possessions by Safestore London:

Recently a friend of mine was working in Congo on a humanitarian project. It had been explained to the store that he was unable to make payment until my return to the UK due to my accounts being frozen due to his financial information being hacked into while I was on location. Nevertheless company took it upon itself to sell all of his worldly possessions which had been amassed over many years. These included an extensive collection of valuable art, antiques and furniture etc The total value of these items ran into hundreds of thousands of pounds. He had also offered that the store manager examine in his absence the content and take one or two items as collateral which would have more than covered any debt.

The store claims to have sold the entire contents for just over £2000 which leads one to the conclusion that these goods have been purposely been sold for a tiny fraction of there worth in collusion with the company and a third party. The company failed to provide an inventory of the goods removed from the unit, to whom they where given to, the individual sale prices of any of the items and any form of breakdown. My friend contacted the company for a full explanation of your actions only to be given a series of completely contradictory explanations and excuses and a virtual demand that he accept their findings.

A police report has been made implicating your company in the theft of his possessions, a further report is to be made with further findings uncovered by two investigative journalists.

The directors of this company are:

Richard Grainger, Non-Executive Chairman

Peter Gowers, Chief Executive Officer

Richard Hodsden, Chief Financial Officer

Frederic Vecchioli, President,

UPP Adrian Martin, Senior Independent Director

Alan Lewis, Non-Executive Director

Keith Edelman, Non-Executive Director

We would strongly recommend that anyone storing goods of any value read this before doing so.

:angry:

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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