Reclaim Of deposit paid before build starts

[Colin Shaw]

I am about to start a single contractor self build in February. I am currently finalising the windows- the builder had a set quote which I have then gone to the supplier and significantly amended to suit it requirements. 
I have the full quote (£54inc VAT) but the window prices are about to increase. Deposit required to secure them is 35%.

If I pay the deposit now myself, prior to the build start, will I be able to claim VAT back at the end of the build since final payment and delivery will of course be during build period? Even though main contractor will be paying remaining 65% as this is same amount as original quote.

hope this makes sense!

Edited October 6, 2021 by Colin Shaw
Spelling

[newhome]

To reclaim the VAT you need a supply only invoice in your own name from the window company. Any VAT that is paid on that invoice is what can be reclaimed. I had a deposit and 3 stage payments for my timber frame. I was able to reclaim the VAT on all 4 invoices and I very much doubt that HMRC linked the 4 invoices together. So essentially if you receive the correct invoice (not quote) from the window company you should be able to reclaim the VAT paid,

although as it’s a supply and fit arrangement technically you should be paying your contractor with zero VAT who would then pay the window company. 

 

 

[Temp]

+1 Should be ok.

 

I recommend writing a letter to the builder just to document what you are doing and how the final cost will be split. The builder should bill you ex VAT and reclaim the VAT he pays the window company from HMRC himself.

[Colin Shaw]

Thanks for the feedback. Looking at the rules I can see no mention of timeframe pre start I’d build only completion timeframe if submitting within 3 months.

I can explain it clearly if required. 
thanks again..

[Colin Shaw]

18 hours ago, newhome said:

To reclaim the VAT you need a supply only invoice in your own name from the window company. Any VAT that is paid on that invoice is what can be reclaimed. I had a deposit and 3 stage payments for my timber frame. I was able to reclaim the VAT on all 4 invoices and I very much doubt that HMRC linked the 4 invoices together. So essentially if you receive the correct invoice (not quote) from the window company you should be able to reclaim the VAT paid,

although as it’s a supply and fit arrangement technically you should be paying your contractor with zero VAT who would then pay the window company. 

 

 

Agreed with contractor paying but he is not keen to payout now given the long lag until house completion (which I understand - he us very accommodating builder) but to secure now will save 12% uplift (and possibly more by the time we put in the order) from the window company.

[newhome]

1 hour ago, Colin Shaw said:

Thanks for the feedback. Looking at the rules I can see no mention of timeframe pre start I’d build only completion timeframe if submitting within 3 months.

I can explain it clearly if required. 
thanks again..

A valid full planning permission is considered to be the start date for invoices submitted for the reclaim. All ground prep work and if applicable demolition is also eligible for reclaim / zero rating.