VAT CERTIFICATE

[lizzie]

For anyone that may find it useful here is the vat certificate that HMRC pointed me at on their website. I have attached as  a pdf as forum will not allow editable word.doc to be uploaded

 

If you have contractor that is being sticky about zero rating you just give them this cert (completed with relevant details) and pay them net of vat.

 

The cert covers their back with HMRC and doing it this way has worked for me in several cases.

 

 

blank proforma vat cert .pdf

[newhome]

57 minutes ago, lizzie said:

For anyone that may find it useful here is the vat certificate that HMRC pointed me at on their website. I have attached as  a pdf as forum will not allow editable word.doc to be uploaded

 

If you have contractor that is being sticky about zero rating you just give them this cert (completed with relevant details) and pay them net of vat.

 

The cert covers their back with HMRC and doing it this way has worked for me in several cases.

 

 

blank proforma vat cert .pdf

 

That’s a great link! Would have been so useful when I was debating this with suppliers! I just paid one of them the excl vat amount and quoted the legislation at him but this would have been better all round. 

[Jeremy Harris]

It's nice to see that HMRC have got around to doing this at long last. 

 

Years ago, someone on Ebuild knocked up a certificate that quoted the relevant bits of the VAT notice and worked well, I used it, as did several others, and as it was so useful it's been copied here some time ago, I believe, or at least sent by PM to a few people.

[Roundtuit]

 

12 hours ago, lizzie said:

For anyone that may find it useful here is the vat certificate that HMRC pointed me at on their website. 

 

I'm no expert, but I've tried to get my head round VAT notice 708 a number of times,  I don't think that certificate is intended or necessary for your standard self-build. Look at point 5. Are you really going to cough up the vat reclaim if you sell within 10 years?  Section 17.1 of vat notice 708 tells you what you need a certificate for, and as far as I can see, it isn't a self-build. I don't want to be negative, but I'd say your hmrc contact is just adding to the general confusion around what is still currently  a 'minority' vat issue in the uk.

[Temp]

I think technically a certificate is only needed if you are building a charitable building or something like that but it can be used to convince a reluctant contractor to do what they are meant to and zero rate. At least that way the subcontractor has  something to wave at HMRC if they question his VAT return.

 

12 hours ago, Roundtuit said:

Look at point 5. Are you really going to cough up the vat reclaim if you sell within 10 years?

 

Interesting. Also found that discussed here..

 

https://www.justanswer.com/uk-tax/7pbn3-vat-i-m-building-new-house-once-complete-hope.html

 

One view is that VAT is only charged if the "house" is sold after a change of use. So if the self builder sells it as a house after say 5 years and the new owner converts it to a hotel then he might have to pay/repay VAT when he sells it as a hotel.

 

I never actually supplied the HMRC certificate to any trades. I just wrote them a letter stating that the work related to a new build and should be zero rated, and included relevant details like my address and the planning reference number.

 

 

Edited April 6, 2018 by Temp

[lizzie]

yes not relevant unless change of use  I did ask hmrc that specific question.

 

I only had to resort to this when I had a contractor who would not accept planning perm or a letter - they said they would only accept the certificate and as I had inadvertantly paid them over £2k vat and they wouldnt refund I rang hmrc for help and this is what they told me to use. They also said to use if there was any contractor who would not zero rate on planning or letter....there are some!

 

HMRC were extremely helpful to me in this and the ways to use the certificate to ensure smooth vat free supply if needed.