Trade discount for builder and VAT Reclaim

[IanB]

I'm trying to understand the relationship between getting a decent trade discount and then VAT reclaim on invoices in my name.

 

Is it sensible to open a bank account with dual card access for myself and my builder/Project manager (whom I completely trust). My thought process is he can use his trade account to purchase with a discount but ask for VAT receipts to be made out to my name and address to ensure VAT reclaim. That way I keep a handle of current cash balance and outgoing from my account. Is this allowed and best practice

 

Thanks

 

 

[JohnMo]

5 hours ago, IanB said:

Is it sensible to open a bank account with dual card access for myself and my builder/Project manager

No.

 

5 hours ago, IanB said:

My thought process is he can use his trade account to purchase with a discount but ask for VAT receipts to be made out to my name and address to ensure VAT reclaim

Except the builder shouldn't be charging you vat anyway, if he is installing the parts he buys. His service to you should be free of VAT.for goods and service.

 

Trust us nothing to do with the subject.

[saveasteading]

10 minutes ago, JohnMo said:

the builder shouldn't be charging you vat anyway

5% on a conversion.  One big advantage of that is that the builder can own or hire equipment and it falls within he one invoice. VAT reclaims do not otherwise allow tool hire or purchase.

 

But otherwise...NO. There is nothing to stop you buying materials, and the only downsides might be if you get it late, or if there is a problem with quantities/ waste.

[IanB]

I appreciate most materials are VAT free but, correct me if I'm wrong, all purchases incur VAT from the trade/wholesaler which the supplier would normally reclaim back assuming they are VAT registered. When they do a supply and fit it "could" be an opportunity to add an extra tickle to the costs. I am trying to, where possible, purchase as much as possible myself with a trade discount as part of self build, having invoice made out in my name & address and then reclaim at the end of project

[Alan Ambrose]

Don't know whether you got @saveasteading 's point: If you hire in machines, hire surveyors or other 'knowledge workers', buy tools etc then you can't claim back the VAT - these are examples of things that are not on the self-build VAT-reclaim list. If a trade does this for you in the course of doing some work involving labour then they can claim back the VAT but their supply will still be zero-rated to you. That is, you've saved the VAT over buying directly.

 

The other factor though I think is this - it takes a fair amount of time and effort to hunt for good prices / compare products etc. Most trades won't bother knowing they're just going to bill straight through anyway. You have a much bigger incentive to keep your own bill down.