Vat on major works

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    Vat on major works

    I'm Director of an RTM company and we have just received a quote for flooring works and it indicates that we don't have to be charged vat if we are not vat registered.

    We are not vat registered but I always assumed that vat is due on all good and services we buy.

    Any ideas?

    #2
    I'm not registered for v.a.t. but I still have to pay it, for petrol, and weekly shopping bill.

    Your floorer is the end of the line, his time and materials don't get passed on, therefore he has to pay v.a.t.

    But anyone charges you, then for you it does not matter if it includes v.a.t. or not.
    The quoted price is what you pay. with or without V.a.t.

    I think he is pulling a fast one, knowing you will not be filling in v.a.t forms, so he wont charge v.a.t. so saves him the effort of recording it.
    If he does that for 50% of his work, he save 50% of the time and 50% of hios accountants time.

    Don't worry. if he is eligible to pay VAT and does not wish to charge you, that's fine.

    But through his backside about not having to pay v.a.t. for goods or services if you are not registerd.

    Comment


      #3
      Sadly the VAT is due and they are wrong in what they say a simple look at HMRC will suffice.https://www.gov.uk/rates-of-vat-on-d...s-and-services
      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

      Comment


        #4
        If the supplier is VAT registered, it's an offence for them not to charge VAT.
        If you accept a non-VAT transaction there is a (very) small chance you could be accused of inducing their offence - it's happened but it's rare.

        Many small companies operate two separate trading entities, one VAT registered and one not, so that they can trade either way.
        HMRC regard this with deep suspicion.
        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


          #5
          Any trading business or service provider in UK doing over 81,000 turnover in 12 months is required to register for VAT and charge VAT on all invoices for services and supplies provided to end-users including RTMs.
          One man businesses below 81,000 turnover ( e.g window cleaner or gardener ) are not required to register and charge VAT.

          The Standard rate charged for VAT is 20% but electricity bill for residential building communal areas is charged at 5% VAT.

          Comment

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