Losing Out On Jobs Because Not VAT Registered.

[SimonG]

Priced up a barn conversion. Twenty four thousand pounds materials and Labour. Labour was just under seven thousand.

Now the customer apparently only has to pay 5% vat, and has come back this morning to say he is probably going to go with the other company as they are cat registered and it will be easier.

Anybody had the same thing? Anybody any creative ideas to overcome this?

 

[Harvest Fields]

Nope. I normally get the opposite.

 

[SimonG]

Nope. I normally get the opposite.

Normally the same, but apparently it's the only having to pay 5% vat and him claiming back the additional vat on materials.

 

[chris watkins]

Is it Grant funded Si ?

 

[chris watkins]

Maybe draw there attention to this from the VAT man
Energy-saving materials and heating equipment (VAT Notice 708/6)
From what I can see they can't claim back anything. If the other contractor is VAT then it would only be grant funded only or applies to limited areas like controls & renewables.

 

[SimonG]

No, not grant funded Chris. Something to do with it being derelict for a number of years.

 

[Scott_D]

They buy materials and no vat on labour?

 

[Ric2013]

I've had something similar. Customer was blind and new shower cubicle was classed as an adaptation, so he was exempt from having to pay VAT, but I wasn't going to charge VAT. All I could suggest was that he buy his own materials.

 

[SimonG]

This was what he sent me this morning.


I will let you know shortly, but with such a big part of the job being materials I may have to go with someone who is VAT registered. This will not only save me quite a bit now, but should make the eventual overall VAT refund more straightforward as everything will be at 5%.

 

[Harvest Fields]

This was what he sent me this morning.


I will let you know shortly, but with such a big part of the job being materials I may have to go with someone who is VAT registered. This will not only save me quite a bit now, but should make the eventual overall VAT refund more straightforward as everything will be at 5%.

I would leave him to it mate.