Invoicing someone else for work other than the property owner

[Swood92]

Hi there, this is a new one for me, so I am hoping someone else maybe able to help with some advice. I have been asked to build a small extension on an existing property and have now been asked to invoice someone else that does not live at the property. I believe there is no problem in invoicing a third party but they are saying that I need to charge 5% VAT on the invoice and not the usual 20% due to the third party payers line of work. I have worked on properties previously that are entitled to the 5% VAT rate due to the house being empty for more than 2 years and properties that fit the criteria and I also understand not all is allowed to be based on the 5% and certain things still need to be charged at the 20%, so I am pretty clued up on this but not when a third party is paying the bill. I would say I still need to charge the full 20% VAT. 

I deal with all my business VAT myself as in recording and submitting as its not something my accountant gets involved in, so I am trying to find the answer. I am happy to check with HMRC but it seems to take ages to try and get hold of anyone. 

[nod]

Just invoice the person that’s paying you Weather Third party or nor won’t make any difference as to weather the building qualifies for 5% 

In any case You will need documentation showing a reduced rate Or you will need to charge your normal rate 

[Oz07]

I've never heard of a 5% rate for certain occoupations. Tell your original point of contact he needs to show you the relevant vat notice and relevant proof that his stooge qualifies including the fact he has commissioned you to do the job. Otherwise 20%