Claiming roofing and window works through a company

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    Claiming roofing and window works through a company

    I own the rental in my personal name. But have a company for work. With some re-roofing and window works done I have had the works invoiced to the company as a contractor to manage the works and claimed it as expenses and claim VAT. Is this ok and acceptable to do?

    Any advice and information appreciated.

    Thanks in advance.

    PS. the company is in the design sector. You could say design and build. It doesn't sell fruit and veges is what I'm trying to say...

    #2
    The company will need to operate at arms length. I would have thought the additional complexity would have introduced extra costs.

    Comment


      #3
      It doesn't sound as though the work is anything to do with the company.
      The transaction is simply designed to reduce tax and should not have taken place.

      Because the company and the individual are so clearly interchangeable, the transaction is a sham.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Sounds like VAT fraud to me (but IANAL). An honourable citizen would likely report the company...
        https://www.gov.uk/report-vat-fraud
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          The contractor company has to charge its bill ( job expenses + profit margin ) at the VAT rate to the property owner ( you) .

          The chargeable VAT rate can be 5% or 20% ( according to VAT Notice 708.)

          https://www.gov.uk/government/public...esidential-use

          Comment


            #6
            And the job expenses + profit margin must reflect the proper market prices as though the company was providing the service to an outsider. As well as charging the landlord the price for which they could have had the job done by an independent third party, including VAT, it has the additional cost of documenting how it arrived at an open market price for the job.

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