In terms of your VAT Queries, whether VAT is either reclaimed on expenditure or charged for services given to clients - this will depend whether the letting agent in question is Registered for VAT with HMRC. If they are not VAT Registered, then they cannot charge VAT to the landlords - but must pay VAT on any Vatable expenditure incurred either on their own costs or on belalf of each landlord.

It sounds like your using Sage to input the data, in order to decide which T code to use, you will first need to consider the VAT Registration status.7

Hope this helps.

Ben

Residential lettings are IMHO one of the trickiest types of bookkeeping for lots of reasons. It sounds to me like you need to have a proper discussion with the bookkeeper who's client this is to find out exactly what the set up needs to be. If this is an established business then looking to how things have been done previously will also be important. You need to know what the contract between the agent and the landlord says.

VAT is chargeable on all supplies made, not just commissions, unless we are talking about disbursements. If you have a look on the HMRC website, you will see that the definition of a disbursement is very tight and my experience is that residential lettings companies do not apply the disbursement rules. Thus if a plumber charged the agent £100 plus VAT, the agent claims back the £20 as input VAT and charges the landlord £100 plus VAT (plus whatever fee for arranging the repair, if appropriate).

So at the end of the month, the landlord might get a statement saying something like:

Rent received from J Smith £500
Less agent's fee @ 10% £50 plus £10 VAT
Less plumber's bill £100 plus £20 VAT
Total due to landlord £320

BUT it can be complicated by the agents holding a pot of the landlord's money to use for repairs, or by sinking funds.....so it's really important that you know the full details of how this business operates, rather than trying to guess anything you aren't sure about.

Edited to add: I've just noticed that your signature says you're training as a bookkeeper, it sounds like you may not yet be ready for a complicated situation like this, which makes it even more important to talk to the bookkeeper you are working for.