VAT reclaim for kitchen bought via joiner

[tomfc]

Hi there, I'm new to these forums and to self building so please bear with me! We're building a traditional 3-bed detached house at the moment, and I have a couple of questions about the possibility of VAT reclaim (I think we might've screwed up but I'm trying to work out if there's a way to sort it out).

 

We've bought a kitchen from a trade supplier using our joiner's trade account. He's not VAT registered himself. All the way through the kitchen company talked about us being able to reclaim VAT on it so we never even gave it a second thought until now when I've just read through the HMRC VAT reclaim forms and guidance. But the receipt for the kitchen is in our joiner's name not ours as it is on his account, and I'm worried we thus can't claim (as technically he's bought it off them, and we've bought it off him?). Is there any way around this? Would it be ridiculous to ask the kitchen company to print out a receipt in our names instead?

 

Second question: Whilst our joiner is fitting most of the kitchen, the granite worktops are being fitted by the kitchen company themselves (and have been invoiced separately to the rest, still addressed to our joiner). Should these have been zero rated when we paid for them as they I guess are 'supply and fit'?

 

Any help would be appreciated, thanks in advance! :)

[Thedreamer]

14 minutes ago, tomfc said:

Hi there, I'm new to these forums and to self building so please bear with me! We're building a traditional 3-bed detached house at the moment, and I have a couple of questions about the possibility of VAT reclaim (I think we might've screwed up but I'm trying to work out if there's a way to sort it out).

 

We've bought a kitchen from a trade supplier using our joiner's trade account. He's not VAT registered himself. All the way through the kitchen company talked about us being able to reclaim VAT on it so we never even gave it a second thought until now when I've just read through the HMRC VAT reclaim forms and guidance. But the receipt for the kitchen is in our joiner's name not ours as it is on his account, and I'm worried we thus can't claim (as technically he's bought it off them, and we've bought it off him?). Is there any way around this? Would it be ridiculous to ask the kitchen company to print out a receipt in our names instead?

 

Second question: Whilst our joiner is fitting most of the kitchen, the granite worktops are being fitted by the kitchen company themselves (and have been invoiced separately to the rest, still addressed to our joiner). Should these have been zero rated when we paid for them as they I guess are 'supply and fit'?

 

Any help would be appreciated, thanks in advance!

 

Perhaps your kitchen supplier might change the invoice, that would be the first suggested action. You don't ask, you don't get.

 

There is a section on the VAT reclaim form concerning where invoices are not made out in your name. Maybe somebody else here can say if this box has been that effective.

 

On your second point. Yes if a supply and fit it should be zero rated. I would ask them to refund the difference and address it to you.

 

I took out trade accounts everywhere so I don't see why it would be an issue for you. 

 

 

 

 

 

 

 

[recoveringbuilder]

I bought a few things through trade accounts of my builders and the suppliers couldn’t make the invoice out to me but I successfully claimed back the vat by pointing out which invoices these were and explaining why these were not in my name. I can’t comment on the supply and fit of your worktops .

[ProDave]

The kitchen worktops if "supply and fit" should have been zero rated by the installer.  You need to go back to them, point out this was a new build house and it should have been zero rated and for them to refund the VAT you have paid.  you will not be able to claim that back any other way.

 

Our worktop fitter did that, they would not commit to zero rating until their surveyor had been to the house to measure up and then he was happy to confirm it was indeed a new build house in the process of being built and zero rated the invoice.

[tomfc]

Thanks everyone for their comments so far - as I say I'm new to all this and learning as I go! I will ask them to zero rate the worktops and if they can produce another invoice with my name. But if not then I suppose I will just have to try with the invoice we have addressed to our joiner.

 

 

4 hours ago, recoveringbuilder said:

I bought a few things through trade accounts of my builders and the suppliers couldn’t make the invoice out to me but I successfully claimed back the vat by pointing out which invoices these were and explaining why these were not in my name. I can’t comment on the supply and fit of your worktops .

 

This makes me feel a bit less worried - @recoveringbuilder can I ask how you went about this? Did you just add a simple note to the HMRC forms simply saying that the items were bought through your builder's account sufficient? Or did you have to send more proof that you paid for the items etc? I was under the impression HMRC could be quite picky over these things?

 

[recoveringbuilder]

No I just added a note with regards to the invoices it concerned , if I remember correctly the card machine receipt was also attached to the invoices .

[newhome]

5 hours ago, tomfc said:

This makes me feel a bit less worried - @recoveringbuilder can I ask how you went about this? Did you just add a simple note to the HMRC forms simply saying that the items were bought through your builder's account sufficient? Or did you have to send more proof that you paid for the items etc? I was under the impression HMRC could be quite picky over these things?

As @recoveringbuilder says ensure that you articulate why the invoice isn’t in your name (it asks you to explain why any invoices aren’t in your name on the form). I would also send proof of payment including the VAT. 

[tomfc]

Thanks for the help guys!

 

So when I went back they said they'd see what they could do about an invoice in our name, but they argued against refunding the VAT from the granite worktops + fitting invoice. Their argument seemed to be that their fitters were a different division of their company, but am I right in saying they're still in the wrong? If we were invoiced by this company for worktops + fitting surely then this should be zero rated regardless of whether it is a different division of their company that fits or anything like that...?!

[newhome]

23 minutes ago, tomfc said:

Their argument seemed to be that their fitters were a different division of their company, but am I right in saying they're still in the wrong? If we were invoiced by this company for worktops + fitting surely then this should be zero rated regardless of whether it is a different division of their company that fits or anything like that...?!

Yes they are wrong. You could ask them to change the invoice to say ‘supply of’ and remove the line re fitting (if you get my drift ....). 
 

 

[tomfc]

Argh, so the kitchen company is Howdens and they are refusing to do anything for us. Perhaps I should have known better than going with them, but alas.

 

When asking for a VAT refund on the worktops + fitting I have been told rather rudely that I was completely wrong, everything they sell should have VAT charged, and then "I wouldn't have thought a big company like Howdens would be doing anything wrong regarding HMRC". They also refuse to alter any invoices, which are still also sadly made out to the joiner.

 

Honestly I've had shocking service from them all along so I shouldn't be surprised, I was stupidly pressured into buying during the 'sale' but would never use them again after all the hassle we've had throughout. I just don't know what else I can do but I feel like I'm chancing it at best with HMRC and gonna lose out on all of this VAT money

[newhome]

So you’ve rather complicated it for yourself having the work invoiced to your builder. I think you will get away with reclaiming the VAT on the supply of the kitchen as noted above but a 3rd party has ordered the supply and fit of the worktops so that muddies the water a bit. It’s still worth another go however as the work on a new build should have been zero rated. I assume you’ve simply spoken to someone in the shop? Forget them, and contact head office with an email explaining that supply and fit work on a new build property should be zero rated and point them at VAT Notice 708 Section 11.

 

https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section11

 

If you can’t find a contact write a comment on their Facebook page (you’ll probably have to randomly comment on one of their posts as others have done) and you should get a response from them.
 

Failing that write to the CEO Andrew Livingston. 
 

 

[tomfc]

5 hours ago, newhome said:

So you’ve rather complicated it for yourself having the work invoiced to your builder. I think you will get away with reclaiming the VAT on the supply of the kitchen as noted above but a 3rd party has ordered the supply and fit of the worktops so that muddies the water a bit. It’s still worth another go however as the work on a new build should have been zero rated. I assume you’ve simply spoken to someone in the shop? Forget them, and contact head office with an email explaining that supply and fit work on a new build property should be zero rated and point them at VAT Notice 708 Section 11.

 

https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section11

 

If you can’t find a contact write a comment on their Facebook page (you’ll probably have to randomly comment on one of their posts as others have done) and you should get a response from them.
 

Failing that write to the CEO Andrew Livingston. 

 

Thanks again for all the advice and help! I realise now I've made things rather difficult for myself, as always I should have done my research! Yes I've spoken to (useless) people in the shop, but yes I will try to contact their customer services and see if I get any further. I've a good mind to make a complaint at the same time, given how terrible their service has been. I'm dubious their customer services will be any better but I'm willing to try.

[Temp]

I agree with others..

 

Work tops - If the supply and installation was all on one invoice then I agree with others that it should have been zero rated to you.

 

If the supply and installation are separate invoices from different companies then the supply should be standard rated and the installation zero rated. You could reclaim the VAT on the supply.

 

The kitchen work tops you will have to explain to HMRC why the joiners name is on the invoice.

 

[newhome]

29 minutes ago, tomfc said:

I've a good mind to make a complaint at the same time, given how terrible their service has been. I'm dubious their customer services will be any better but I'm willing to try.

Write a review here. Seems like they read these. 
 

https://uk.trustpilot.com/review/www.howdens.com?page=58

 

 

[tomfc]

5 hours ago, newhome said:

Write a review here. Seems like they read these. 
 

https://uk.trustpilot.com/review/www.howdens.com?page=58

 

Yes, I did see this page and that they responded with a comment and generic email, so will give it a go! Cheers