Vat on a new build?

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Parko

Parko

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Priced a job to skim a couple of new build houses for a builder last week and he is adamant that I shouldn't charge him vat on a new build, this is news to me as I've always charged no matter what, I don't think he's trying to have me over as he's a genuine bloke but this is a strange one , I could ring hmrc to confirm but don't fancy listening to depressing music for 45mins ,any input lads?
 
Ok thanks , I can't believe my accountant or all my other builders accountants havnt picked up on this before then:RpS_confused:
 
Parko said:
Ok thanks , I can't believe my accountant or all my other builders accountants havnt picked up on this before then:RpS_confused:
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you are the person that is vat registered therfore you are the person that should know the rules.
 
Vat on new build is a mind field as different rates for schools, charities, commercial etc,but for domestic is fairly straight forward.
it depends how the builder operates, and what agreement you have, Some builders you can invoice them the full amount plus your vat, and they'll claim it all back on the labour and materials, some will do it in good faith for you to aid your cash flow, some won't.
 
True, but I didn't choose to be vat registered so that's why I pay an accountant as this has never been an intrest of mine , have you seen the size of the"understanding vat guide" it's bigger than the rules of golf , so I was just wondering if it was my accountant at fault as I would expect them to"know the rules"
 
Parko said:
True, but I didn't choose to be vat registered so that's why I pay an accountant as this has never been an intrest of mine , have you seen the size of the"understanding vat guide" it's bigger than the rules of golf , so I was just wondering if it was my accountant at fault as I would expect them to"know the rules"
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it is part of the registation that you know the rules. i am not registered therefore i do not need to know.
when i was registered i had a court hearing against me and i was told because i was registered therefore i was the one that must know the rules
 
Parko said:
True, but I didn't choose to be vat registered so that's why I pay an accountant as this has never been an intrest of mine , have you seen the size of the"understanding vat guide" it's bigger than the rules of golf , so I was just wondering if it was my accountant at fault as I would expect them to"know the rules"
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Parko it's not the job of your accountant to decide when you should charge VAT it's yours. You need to know the rules that relate to the type of work you take on. HMRC have a very good website with all the answers you will ever need.
 
I never charge vat on new build and the input vat that you fork out on materials for that particular job is claimed back later

New build = zero vat rated
 
Not all new build are zero vat rated. For instance the schools we are working on are not except

I'm using The Plasterers Forum Mobile App
 
Obviously I will need to look deeper into this area now ,as I thought it would be a simple yes or no question, I know it's not my accountants job to decide when I should charge vat Andy I was just getting at I thought it would have been picked up by now not just by my acc but from the various builders accountants from whom I have been needlessly charging vat,
 
Hi guys,

Just seen this. We don't get involved with VAT clients I'm afraid. I have seen mention before of new builds being zero rated though and I also agree - it's an absolute minefield.

To be fair, if you use an accountant who is familiar with VAT clients, then he should really know to at least be able to advise you. I also know what you mean about hanging on the phone to HMRC for advice. However, their phone lines are now free, I believe (after the uproar about the £££££s they made on people just hanging on!).

The link @johniosaif posted seems fairly explanatory and will probably make more sense to you, being in the trade.

Sorry I couldn't be more help.
 
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Useless your accountant is going to look through every sales invoice and query if each job is a new build or not if you use your accountant to just produce yearly accounts then they wont know any different. If you pay them to do quarterly Vat returns then yes they should pick it up if your invoices state "New Build" otherwise your accountant wont have a clue what you are working on.
 
That's why it confused me as I use the same acc as the main builders of some nursing homes I've been working on and they must be vat applicable so I wrongly assumed this was across the board, I will indeed educate myself in the joys of vat now, that reminds me,Essex Andy is it possible to get hold of board finish down your way? Doing a job in Loughton , spoke to the local Jewsons and they've never even heard of it , I always struggle to get hold of it any further south of Barnsley ta
 
BetterTAX said:
Hi guys,

Just seen this. We don't get involved with VAT clients I'm afraid. I have seen mention before of new builds being zero rated though and I also agree - it's an absolute minefield.

To be fair, if you use an accountant who is familiar with VAT clients, then he should really know to at least be able to advise you. I also know what you mean about hanging on the phone to HMRC for advice. However, their phone lines are now free, I believe (after the uproar about the £££££s they made on people just hanging on!).

The link @johniosaif posted seems fairly explanatory and will probably make more sense to you, being in the trade.

Sorry I couldn't be more help.
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So you aren't accountants then? You are obviously just one of these companies that gets subbies tax back quickly and takes a cut. No offence!
 
Domestic new builds are zero rated, commercial, i.e schools, shops, factories etc are vat rated. Some charities and churches etc can be zero rated but they should be issued with some sort of proof from HMRC to show this. If in doubt, charge vat. This is what the HMRC told me, as it can be reclaimed by the client if they too are vat registered. New builds that are extensions to existing buildings are vat rated.
 
@Parko yeah you can get board finish down here without to much hassle. I believe Travis have stopped stocking it but as Currier said B&Q still do it. Personally I just stick to Multi though so not sure which other merchants will have it.
 
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Wickes at Harlow stock it,not to far, any way what the fck you doing coming down here nicking our work?
 
We just completed an independent block of new build classrooms for a secondary school and was told to add 20% vat to the bill which I thought was a bit odd!.
 
TonyM said:
So you aren't accountants then? You are obviously just one of these companies that gets subbies tax back quickly and takes a cut. No offence!
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Offence taken! We are tax agents specialising in construction worker tax returns. We do it as quick as HMRC get their wiggle on. We have a fee structure that has been worked out to be the fairest for employment status. We do a good job, according to the 102 reviews we have received on Freeindex.

You'd be surprised how many clients we have that have come from accountants who have managed to screw them over. And we have an example here even of an accountant who isn't really giving his client best advice, even though as has been pointed out, the person registered for VAT should know the rules.

We are also very aware of companies that you seem to be alluding to, as I have to say your post has a detrimental slant to it.

However, I won't be getting into an arguement with you about it, but your comment wasn't necessary and I am just stating our position.
 
lucius said:
Wickes at Harlow stock it,not to far, any way what the fck you doing coming down here nicking our work?
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Ha yes I'm sorry to u Essex boys for treading on your toes, I know u don't like us northern monkeys pinching your work but that's how it is doing these old fogeys homes ,one after the other all round the country , off to Hastings after this one , by the way do i need to get my teeth whitened,get some blonde highlights , and drive around in a black x5 saying things like diamond geezer and that currant bun is right in my fackin mince pies, or have I caught to much towie (only cos the wife watches it)
 
BetterTAX said:
Offence taken! We are tax agents specialising in construction worker tax returns. We do it as quick as HMRC get their wiggle on. We have a fee structure that has been worked out to be the fairest for employment status. We do a good job, according to the 102 reviews we have received on Freeindex.

You'd be surprised how many clients we have that have come from accountants who have managed to screw them over. And we have an example here even of an accountant who isn't really giving his client best advice, even though as has been pointed out, the person registered for VAT should know the rules.

We are also very aware of companies that you seem to be alluding to, as I have to say your post has a detrimental slant to it.

However, I won't be getting into an arguement with you about it, but your comment wasn't necessary and I am just stating our position.
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You are way up there with the PPI reclaim companies in my book then.
...and I can write in pretty colours too!
 
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A word of advise.

If your zero rating invoices for " new build " , make sure you gather some proof that the contract was new build. If you have an inspection you may be asked for evidence.
A copy of the completion certificate will suffice.
 
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