Losing Out On Jobs Because Not VAT Registered.

[Ric2013]

Agree. Whereas a non-VAT installer would be lumbered with paying 20% VAT on materials which would put them at a disadvantage against an installer that pays no VAT on materials and only has to charge the customer 5% in this case.

Unless the job price is 4 x the cost of materials, then the VAT reg'd business has the edge.

 

[firemant]

Doesn't matter the percentage because as the vat is not his to claim back , the fact he's asking you if your vat registered sounds to me like he automatically thinks you or who ever gets the job will simply give him the vat back, that's a lot for a tradesman to loose out on. Or am I not understanding it lol

You are misuderstanding. VAT is never the tradesmans.

Things may have changed, but I was under the impression that converting anything (completely non residential) to a dwelling was ZERO rated. It may be 5%, I may have misunderstood that bit myself.

However, any reduction of VAT is for the clients benefit. It used to be the case (when I had a shop) that new builds into which we installed products were zero (or exempt, cant recall which) rated. We paid VAT on our pruchases, claimed that back as normal, but obviously there was no VAT to pass on from that job.

Where we supplied only (Fires and Fireplaces), we would charge the VAT at normal rates, and the client would claim the VAT back (at the end of the build, I beleive)

 

[firemant]

A quick Google found this:
Claim VAT refunds if you build new houses on a DIY basis

It seems ALL the VAT is reclaimable, where does the 5% discussed here come from? 5% is the rate applied to certain energy controls, much of which was always a mystery to me, and even HMRC disagreed with CORGI when they offerred a VAT claim back for installers.

In fact, as I write, I am thinking maybe that iwhere Kris was coming from. CORGI used to (and maybe still do) had a program whereby you as an installer would use their system to claim 5% on boiler changes, in return for commission. The installer DID get the benefit of this, but only if they quoted a single figure. If you quoted "VAT included at 20%" or "£x Plus VAT", any reclaim would have to be refunded to the client. If you quoted "£***", then you could keep the reclaimed VAT.
But HMRC claimed CORGI were claiming for non qualifying products, and I agreed with them, so never got involved.

 

[Best]

Vat can vary depending on how long a period a house has been vacant that is being refurbished I believe

 

[firemant]

Vat can vary depending on how long a period a house has been vacant that is being refurbished I believe

The OP referred to a barn - which presumably has never been residential.
I do not believe any refurbishment projects of derelict homes EVER get VAT relief of any sort.
But I am always prepared to be corrected with actual evidence.

 

[Best]

The OP referred to a barn - which presumably has never been residential.
I do not believe any refurbishment projects of derelict homes EVER get VAT relief of any sort.
But I am always prepared to be corrected with actual evidence.

They do. Not sure of the details, but if a house has not been occupied for a certain number of years (I think 10 or more), then vat is reduced.

A barn or outbuilding, as you say, is not a dwelling and would be vat free to be converted into a dwelling

 

[SimonG]

Appreciate the comments, but the ship has sailed.

I still can't figure it out but won't lose sleep over it.

Cheers.