Discuss Zero rate vat to sub contractors in the Business Related area at ElectriciansForums.net

Welcome to ElectriciansForums.net - The American Electrical Advice Forum
Head straight to the main forums to chat by click here:   American Electrical Advice Forum

J.C.E

-
Arms
Reaction score
158
Morning guys

I am doing some new build flats that qualify for zero rate vat. So I am charging vat at zero % to the main contarctor.
However I have a lad working for me (labour only) on the job but he is VAT regiestered. I deduct his CIS from his invoices to me. Do I pay him vat or should he too charge at zero% to me?

Cheers

J
 
It used to be the case that you reclaimed the VAT after a house was built. You paid VAT on materials etc then got back the total amount of VAT on the build. If that hasn't changed, you should charge VAT on your invoices to the builders. They can claim it back from HMRC...and you will be liable to account for the VAT you should have charged.
 

just need to know if i pay for vat on a sub contractos invoice to me (who is not charging vat)
 
As per Mike earlier, the way I read it is anyone and everyone who is VAT registered, including your VAT registered labour only, should be charging, infact must, charge VAT.

It's not untill completion that the project can be deemed VAT Zero.
Althought the project SHOULD be Vat Zero it may not meet the criterior, for example the planning is changed and it becomes Business premises prior to completion.
 
I’m pretty sure that’s not right.

You only reclaim the vat at the end if you’re a non vat registered house builder or personal self build. I know because I did this myself a couple of years ago.

Otherwise all construction work on new builds is zero vat rated. Nobody charges vat on new builds. Including all sub contractors. I’m sure we never have. You can of course reclaim vat on your materials purchases in the usual way.

Please check this with your accountant though.
 
Working on a new build , these are my experiences.....

HMRC confirmed to me that i should not charge VAT to the client, this saves the hassle to them of having to deal with a VAT reclaim after building completion. I have therefore not be charging VAT on labour or materials.

I have had zero success convincing subs to NOT charge me VAT, this has caused me some cash flow issues , whilst i reclaim this VAT from HMRC.

The main talking point is what qualifies for zero VAT and what does not. The general rule (which we have been following is.... If you turn the house upside down what falls out does not qualify.... lol
 
You were actually able to reclaim this vat the subs charged you? Through what mechanism?

I’ve not had to attempt it, but I’m sure my accountant advised it may not be possible to do so. My memory is hazy on that though.
 
I am subbing to a company on one of these builds, I have been instructed not to charge VAT on Mat' or Lab' even though I am VAT registered, there are certain jobs on the new build that do not qualify for zero VAT which makes it a minefield if you are doing both.
 
I am subbing to a company on one of these builds, I have been instructed not to charge VAT on Mat' or Lab' even though I am VAT registered, there are certain jobs on the new build that do not qualify for zero VAT which makes it a minefield if you are doing both.

Had similar last summer on a refurb project where they were also adding apartments. Because of the way the additional apartments were added the building works (including electricals) on the new apartments were 5% VAT, all work on the existing apartments was standard rate, and the post building work was also at standard rate.

Most of the VAT registered contractors such as myself of course worked exclusively on the building works for the additional apartments.
 

Reply to Zero rate vat to sub contractors in the Business Related area at ElectriciansForums.net

OFFICIAL SPONSORS

Electrical Goods - Electrical Tools - Brand Names Electrician Courses Green Electrical Goods PCB Way Electrical Goods - Electrical Tools - Brand Names Pushfit Wire Connectors Electric Underfloor Heating Electrician Courses
These Official Forum Sponsors May Provide Discounts to Regular Forum Members - If you would like to sponsor us then CLICK HERE and post a thread with who you are, and we'll send you some stats etc
This website was designed, optimised and is hosted by Untold Media. Operating under the name Untold Media since 2001.
Back
Top
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock