joe90 Posted October 21, 2019 Share Posted October 21, 2019 3 minutes ago, Temp said: Labor - zero rated to you, VAT paid in error cannot be reclaimed. I made a mistake and paid my builder VAT on the labour to build my garage (I paid VAT on materials and claimed that back’) it was my VAT advisor that I paid to do my claim that spotted it and negotiated with my builders accountant for them to refund the VAT back to me, presumably they reclaimed it back from HMRC. Link to comment Share on other sites More sharing options...
newhome Posted October 21, 2019 Share Posted October 21, 2019 2 hours ago, joe90 said: I made a mistake and paid my builder VAT on the labour to build my garage (I paid VAT on materials and claimed that back’) it was my VAT advisor that I paid to do my claim that spotted it and negotiated with my builders accountant for them to refund the VAT back to me, presumably they reclaimed it back from HMRC. Companies can adjust their VAT returns up to 4 years plus the period to the start of that tax year so yes they can sort that with HMRC. If it’s over that time, the company has gone bust or deregistered for VAT you are stuffed however so always best to fully consider if you have been charged the right VAT from the get go. 1 Link to comment Share on other sites More sharing options...
SteamyTea Posted October 21, 2019 Share Posted October 21, 2019 2 minutes ago, newhome said: so always best to fully consider if you have been charged the right VAT from the get go. When I suggested that approach, all I heard was many reasons why it would not happen. I find it best to get these things sorted out before purchase. If the vendor is unwilling/unable, then find someone that can accommodate it. 1 Link to comment Share on other sites More sharing options...
newhome Posted October 21, 2019 Share Posted October 21, 2019 Just now, SteamyTea said: When I suggested that approach, all I heard was many reasons why it would not happen. From whom? 1 minute ago, SteamyTea said: I find it best to get these things sorted out before purchase. If the vendor is unwilling/unable, then find someone that can accommodate it. Yes, totally. Link to comment Share on other sites More sharing options...
SteamyTea Posted October 21, 2019 Share Posted October 21, 2019 3 minutes ago, newhome said: From whom? People on here. Can't remember the name of the thread, and care even less as I think building your own home from scratch is a bit too much. So not my problem. Link to comment Share on other sites More sharing options...
newhome Posted October 21, 2019 Share Posted October 21, 2019 3 minutes ago, SteamyTea said: People on here. Must have been eons ago then as I don’t recall anyone giving this advice. Why on earth would you want to incorrectly pay VAT and risk not getting it back later? The VAT guide on here certainly advises everyone to a. check the VAT rate that should apply to every job / purchase and b. ensure that the trader will apply the right VAT rate. Link to comment Share on other sites More sharing options...
SteamyTea Posted October 21, 2019 Share Posted October 21, 2019 6 minutes ago, newhome said: Must have been eons ago Link to comment Share on other sites More sharing options...
newhome Posted October 21, 2019 Share Posted October 21, 2019 Still not sure what you’re getting at tbh. Can’t see anyone saying pay the incorrect VAT rate and worry about it later? Link to comment Share on other sites More sharing options...
Bitpipe Posted October 21, 2019 Share Posted October 21, 2019 33 minutes ago, SteamyTea said: When I suggested that approach, all I heard was many reasons why it would not happen. I find it best to get these things sorted out before purchase. If the vendor is unwilling/unable, then find someone that can accommodate it. Not sure what your point is but agree that sooner is always better. However much of self build is a journey of discovery so you don't always know what's 'right' until after the fact. I found merchants happy to reissue VAT invoices some 3 years after the purchase (no changes) but had zero success persuading my ground investigation firm (3 years after the fact) to refund any of the VAT I was charged, even though the guidance suggests (in reverse) that their on site services involving tools should have been zero rated. They looked at my request and then just said no. 3.3.6 Services carried out before or after the construction of the building If you carry out services either before or after the physical construction of the building takes place, they can only be seen as closely connected if there’s a close connection between when they’re performed and when the physical construction of the building takes place. Services in paragraph 3.3.4 are standard-rated where, for example: Services in paragraph 3.3.4 are standard-rated where, for example: site investigation or demolition work is carried out before planning permission for the construction of a building that qualifies for the zero rate has been granted Which implies that doing this with PP would be zero rated. Link to comment Share on other sites More sharing options...
newhome Posted October 21, 2019 Share Posted October 21, 2019 1 minute ago, Bitpipe said: but had zero success persuading my ground investigation firm One of those very grey areas where some people have had success and some not. Luck of the draw I guess when you’re going after something retrospectively. Link to comment Share on other sites More sharing options...
Bitpipe Posted October 21, 2019 Share Posted October 21, 2019 29 minutes ago, newhome said: One of those very grey areas where some people have had success and some not. Luck of the draw I guess when you’re going after something retrospectively. If I had known at the time I would have made sure. The SE commissioned the study and I approved the fees. First study it was all a bit of a car crash and needed a second (slightly) discounted study to get a clear view - there was quite a ding dong and their MD got involved but only budged minimally on the extra fees. So I suspected that I was on a sticky wicket to get the VAT back a few years down the road! To add insult to injury, when the dispute was ongoing, they sent my SE a nice bunch of flowers to say sorry for the trouble and I got naff all. Link to comment Share on other sites More sharing options...
newhome Posted October 21, 2019 Share Posted October 21, 2019 12 minutes ago, Bitpipe said: If I had known at the time I would have made sure. I screwed up both the scaffolding and the crane (with operator) hire. Paid full VAT on both. Was too late to do anything about it once I had aquainted myself with the VAT regs in more detail after joining this forum which is one of the reasons I wanted to write a guide on here to try to help others avoid overpaying. Link to comment Share on other sites More sharing options...
Bitpipe Posted October 21, 2019 Share Posted October 21, 2019 2 minutes ago, newhome said: I screwed up both the scaffolding and the crane (with operator) hire. Paid full VAT on both. Was too late to do anything about it once I had aquainted myself with the VAT regs in more detail after joining this forum which is one of the reasons I wanted to write a guide on here to try to help others avoid overpaying. Did you even try to get them to refund it & claim back from HMRC? Is there a way to alert HMRC to incorrectly paid VAT by a vendor - kind of name & shame them? Link to comment Share on other sites More sharing options...
newhome Posted October 21, 2019 Share Posted October 21, 2019 10 minutes ago, Bitpipe said: Did you even try to get them to refund it & claim back from HMRC? No because it was over the 4 years they had to make the adjustment and the scaffolding company had gone bust anyway! Link to comment Share on other sites More sharing options...
macglo Posted October 23, 2020 Share Posted October 23, 2020 Thanks for all the advise on this thread, just need to start posting more, so i can see more content and VAT info Link to comment Share on other sites More sharing options...
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