Hi there, this is a new one for me, so I am hoping someone else maybe able to help with some advice. I have been asked to build a small extension on an existing property and have now been asked to invoice someone else that does not live at the property. I believe there is no problem in invoicing a third party but they are saying that I need to charge 5% VAT on the invoice and not the usual 20% due to the third party payers line of work. I have worked on properties previously that are entitled to the 5% VAT rate due to the house being empty for more than 2 years and properties that fit the criteria and I also understand not all is allowed to be based on the 5% and certain things still need to be charged at the 20%, so I am pretty clued up on this but not when a third party is paying the bill. I would say I still need to charge the full 20% VAT.
I deal with all my business VAT myself as in recording and submitting as its not something my accountant gets involved in, so I am trying to find the answer. I am happy to check with HMRC but it seems to take ages to try and get hold of anyone.
