Who claims back which VAT for new build

[puntloos]

Since this is a new build, and my contractor is at least doing some of the VAT hassle, but I've also been sourcing some stuff by myself (some tiles, fancy toilet etc) my questions
 

1/ Do we submit one reclaim for the entire build? Or can I submit and contractor submits for the same build/address?

2/ Does the contractor pay their suppliers inc VAT, and if so, does that mean they will give me a bag of money after the build (when the reclaim happens?)

3/ Are there cases where I can pay the price minus VAT and the supplier makes a note for their books somehow? (sometimes having the money stay in my pocket is better than perhaps literally having to borrow money to pay the inclusive vat price)

Edited November 25, 2023 by puntloos

[Thorfun]

I don't get this question. your VAT reclaim and the contractor's VAT reclaim have nothing to do with each other. Your contractor shouldn't be charging you VAT. if they are then there's nothing you can do to reclaim it.

 

anything you've purchased can go in your VAT reclaim.

[Kelvin]

You have massively misunderstood how the VAT reclaim process works. 
 

https://www.self-build.co.uk/our-guide-claiming-back-vat-self-build/

https://www.gov.uk/vat-building-new-home/how-to-claim

 

[Bramco]

47 minutes ago, puntloos said:

3/ Are there cases where I can pay the price minus VAT and the supplier makes a note for their books somehow?

 

Agree with the other responses but on this point - yes - we supplied the windows for our build and the supplier asked for the planning permission details and charged us zero VAT as it was a new build. But you really need to get them to sort this out before invoicing.  We had several suppliers do this, even though there was a main contractor - they simply zero rated everything.  We even had the drive done a year after completion and because it was on the planning application, that was also zero rated.

 

Simon

[joe90]

Agree with the above, yours and your contractors VAT are separate. HOWEVER, because I used a VAT reclaim co. to do mine (I am useless with paperwork) they discovered my builder had made a mistake (genuine I know) and the builder gave be back about a grand. Unless you know you are good at paperwork I would recommend   https://www.vat431.co.uk   He even contacted companies to get the correct receipts when I got it wrong, it actually cost me less than doing it myself (if I could get it right 🤷‍♂️).

[saveasteading]

You get back most of the vat you have paid.. NB Paid.

So 20% on materials you bought direct. 

But if you have paid a contractor 5%, then you claim back only the 5%. The contractor sorts out the rest.

You claim only once.

3) No.

[puntloos]

OK, I was/am unclear if they pay the inc or ex VAT price (hence my #2 question) when they are purchasing stuff from 3d parties ("Jewson" or "Kitchen subcontractor co"). From your answers I am taking that they should be paying ex VAT prices (and then their OH/P added on), and therefore the only one who should fill out the reclaim is me. Fair enough. 

[Tom]

9 hours ago, saveasteading said:

But if you have paid a contractor 5%, then you claim back only the 5%.

 

I've got a quick question to add to the above if I may. If my builder/sub-contractor pays ex-vat, but then charges me "commission" on the purchase, eg 12.5%, can I reclaim that back as VAT?

 

Guess not, as that would mean him having to pass his 12.5% on to HMRC?

 

[markc]

1 hour ago, Tom said:

 

I've got a quick question to add to the above if I may. If my builder/sub-contractor pays ex-vat, but then charges me "commission" on the purchase, eg 12.5%, can I reclaim that back as VAT?

 

Guess not, as that would mean him having to pass his 12.5% on to HMRC?

 

No, your subbie will pay the vat and claim it back, the mark-up is for their time and trouble sourcing and paying for the materials. Much better for you to pay directly for materials and claim the vat yourself

[Tom]

Sure, but on occasion for convenience or to take advantage of a better price I've let the subbie get stuff, and then pay a small % commission.

[ToughButterCup]

It's a long read, but worth it: it will save you  (and us) agood deal of time

 

 

[joe90]

1 hour ago, Tom said:

Sure, but on occasion for convenience or to take advantage of a better price I've let the subbie get stuff, and then pay a small % commission.

I did this with my builder occasionally just for convenience to move the build on, win some loose some eh. Mind you, on occasion I sourced stuff cheaper than him (bricks, he was amazed at the deal I struck with a supplier).

Edited November 26, 2023 by joe90