Setting up a Payment Request within a Property (UK-Only)

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For those managing UK-based properties, understanding how to set up a Payment Request is essential for efficient tenant transactions. This article will outline the process of creating Payment Requests and also provide insights into their relation to VAT invoices and arrears management.

 

What is a Payment Request?

A Payment Request is an instruction to a tenant, asking for them to make a payment toward their tenancy. While it prompts payment, it is important to note that a Payment Request is not a VAT invoice and thus carries no VAT liability at the point of issuance. VAT liability only arises with the creation of a VAT invoice, which occurs after payment has been received.

 

Similarities and Differences with Invoices

Although not an invoice, the Payment Request does signify that payment is due on the specified date, similar to an invoice. From an arrears perspective, there's no substantial difference; the key difference lies in the fact that Payment Requests do not result in VAT liability – this is reserved for VAT invoices after payment receipt.

 

Prerequisites for Setting Up Payment Requests

Before setting up a Payment Request within Re-Leased, ensure the following prerequisites are met:

  • You are a UK customer (excluding Jersey).
  • You have a Client Account.
  • The property's usage is either commercial or mixed.
  • The property is VAT Elected.

 

How to Turn On Payment Requests for a Property

To enable Payment Requests for a property, adhere to these steps:

  1. Go to the Property Details page of the relevant property.
  2. Ensure that the VAT Elected setting is toggled to VAT.
  3. Payment Requests can then be turned on within the property settings.

Please note at this time, there is only one template available for Payment Requests, and it cannot be modified.

Activating Payment Requests Video

By following these steps and meeting the necessary conditions, you will be able to successfully set up Payment Requests for your commercial or mixed-use properties in the UK, streamlining your process for requesting tenant payments.

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