new build zero rated vat

[J.C.E]

evening

doing my 1st new build- which is zero rated for vat (apprantely)
do i just invoice awith zero % vat- and just ask the client for a copy of the zero rated new build cert- and put that in my records to show why no VAT was charged- or is it a bit more complicated then this?

cheers

 

[telectrix]

not sure on this, but if you are vat reg. then you charge the builder vat. he claims it back anyway.

 

[J.C.E]

not sure on this, but if you are vat reg. then you charge the builder vat. he claims it back anyway.

my client is the builder who asked me to invoice him zero % vat

 

[Octopus]

my client is the builder who asked me to invoice him zero % vat

I would check that with your accountant or HMRC ........................ if he's wrong YOU will carry the can.

 

[telectrix]

think he's wrong, but wait till a member with a more in depth knowledge is on. last job i did for a builder ( a mate, new build) all trades charged him VAT.

 

[telectrix]

question to OP, are you vat registered?

 

[buzzlightyear]

speaking to a person that I worked for , a big wig that worked at the HMCR ,and he was telling me any person that is VAT reg .and a customer says what is it for cash ,and don't pay the vat .
boy he is in s88t street ,and saw is the builder for not coffin up to her majesties HMCR. just to remind anybodys VAT reg

 

[Octopus]

question to OP, are you vat registered?

He must be given some of the installs he's done ...................

 

[solarsavings]

Just invoice a self build customer 0% vat supply and fix. If I'm working for a builder it is 20%.

 

[J.C.E]

yes i am vat reg- so is builder- but 1st new build i have done- so charge him the vat and let him have the headache?

 

[Octopus]

yes i am vat reg- so is builder- but 1st new build i have done- so charge him the vat and let him have the headache?

Did you not read post #4?

 

[buzzlightyear]

Just invoice a self build customer 0% vat supply and fix. If I'm working for a builder it is 20%.

your vat reg, and you charge vat accordantly.

 

[buzzlightyear]

if you buying gear from a whole seller .you will pay vat. so go to where you buy from, and ask them .I don't want to pay the VAT. and see what they say.

 

[Darkwood]

VAT for builders: Building new homes - https://www.gov.uk/vat-builders/new-homes

 

[Octopus]

VAT for builders: Building new homes - https://www.gov.uk/vat-builders/new-homes

That doesn’t answer the ops question ......

 

[Darkwood]

As I see it you do not charge VAT, as the builder is not claiming anything on the new build even though you are the subcontractor.

The materials you buy are reimbursed on VAT when you do your quarterly returns.
This leaves the Labour issue and whether to add VAT to the bill, as I see it you do not, this will not mean you lose out as your labour chargers (thus your income) which will be proportionately less for Labour/Mat' of 20% means you will not owe that 20% back to the VAT man, it was never yours in that sense.
I would ensure the new-build meets all the requirements of 0% and you do not get caught out and I'm sure you will need to show possibly with a form that the new-build complies and thus you can ensure your books balance.

As in post 4 as mentioned, I would ensure you get professional advice on this as I am just giving an educated guess.

@Murdoch - yes it doesn't answer the specific question but the link gives detail about what does comply on a new build and what doesn't of which the OP needs to be aware.

 

[Leesparkykent]

Yeah you just invoice with 0% VAT and obtain the certificate for your records.

 

[Octopus]

Yeah you just invoice with 0% VAT and obtain the certificate for your records.

What certificate?

 

[buzzlightyear]

What certificate?

death cert
when you put your books in the accounting year.

 

[Leesparkykent]

What certificate?

One that the client supplies in accordance with VAT notice 708 section 18. VAT Notice 708: buildings and construction - https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction#the-certificates