VAT exemption by two separate individuals

[Malcolm Guy]

I am building a new house but using a main contractor. This contractor has registered his involvement with HMRC in order to claim VAT exemption. However, I'm buying some materials and components myself when it is cost effective to do so, e.g. at exhibitions and shows and where I come across sale items. So, I would also like to register with HMRC for VAT exemption in my own right. Is this possible when the house is already registered by the contractor.

Malcolm

[ragg987]

Who owns the self-build - you or the contractor? If you own it then:

• VAT-free is yours to claim
• No need to register in advance, just make the claim within 3 months of completion (definition of completion on HMRC site)
• Contracted labour element (either labour-only or supply and fit) must be zero-rated at source, you cannot reclaim it later. This is where your contractor fits, I do not believe there is a need for them to register (but stand to be corrected)
• Materials you purchase will be VAT-paid and claimed on completion
• Of course subject to the rules of VAT-free, e.g. must be part of the build and not a service

[Temp]

What do you mean by "This contractor has registered his involvement"?

 

Perhaps I'm wrong but I'm not aware of any registration process other than the normal VAT registration process that a business uses.

 

In which case he should/must zero rate everything to you (eg materials and labor).

 

Any VAT you pay whenyou buy stuff is reclaimed by you using form VAT431NB after completion but within three months. Download the form now and set up spreadsheets.

 

Ask the contractor what he means. 

Edited April 9, 2018 by Temp