Vat advice

[Simonn]

Hi all , a newbie self builder after a bit of vat advice.

we have purchased an agricultural barn to convert , we have all planning in place , living in a static caravan on site , all ready to go.

we are about to appoint a builder who is going to do all the structural and building control work then hand it back to us to finish , kitchen , bathrooms , decoration and flooring really.

what vat should my builder be charging me ? Is it 20% for materials and 5% for labour ?

On completion will be looking to claim the vat back through HMRC.

Hope someone is able to help.

Thank You 

Simon and sarah

[JohnMo]

16 minutes ago, Simonn said:

what vat should my builder be charging me

None, materials and labour contract should be charged at zero vat - I assume a barn to house is zero vat 

[nod]

11 hours ago, JohnMo said:

None, materials and labour contract should be charged at zero vat - I assume a barn to house is zero vat 

5%

[Tosh]

builder should charge you 5% for labour and materials. You claim back the 5% as part of your VAT claim at the end. The builder deals with the 15% via their own VAT input/output calculation. Materials you buy direct are 20%, so claim the full amount back. Some of the accountants for supply/install we've used have asked for the planning permission to confirm 'conversion'.