WDF

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About WDF

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  1. They have been invoicing us without VAT until April and have stalled since then. They now want to put a correction in with HMRC. The build is all but finished so I don't necessarily need control over the PM any more. All is good with the PM and the builder and all parties are very happy. Its just a balls up with the VAT and the inexperience of the PM on VAT issues. If PM issues a credit note for the invoices presented to date and then invoices the builder instead (with VAT) he could pay her invoices. I could write a hold harmless letter to the builder freeing them of any liability for her work. Once again, thanks for your expertise and time on this. WDF
  2. The JCT contract is between me and the builder. Should I get the PM to issue a credit note for the work she has done and get her to put an invoice into the builder, if I can get all parties to agree.
  3. Thank you Peter and Ferdinand. Peter, just a follow up question, does the type of contract matter. In principle could my builder have contracted the Project Manager even on a cost plus contract. Many thanks WDF
  4. Hello experts! A question on project management and VAT. I am 90% through a new build house and have engaged a project manager as I am working abroad. We initially were looking at a Design and build contract with a main contractor overseen by our project manager. On the PM’s advice we understood we would not be liable to VAT on her fees. Having received tenders from a number of builders we went with a JCT prime cost plus contract. 12 months into the 18 month project our PM announces that because we had moved from a Design and Build contract to a cost plus then she had to charge VAT on all her fees. Is this correct? Why can you zero rate VAT for PM fees on a design and build contract and not on a cost plus contract. Any advice would be most welcome. Thanks WDF