Vat on major works

  • Filter
  • Time
  • Show
Clear All
new posts

    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?

    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.


      Sadly the VAT is due and they are wrong in what they say a simple look at HMRC will suffice.
      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.


        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).


          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.


          Latest Activity


          • Rent 2 Rent Tax Return
            by dhoops97

            I'm currently receiving the rental income for my dads properties. I'm currently fully managing the properties for him and the tenants are paying the rent into my account. Once I receive the rent, I pay my dad a fixed amount and I keep the rest. Is this legal? And if so, do I pay tax...
            03-08-2021, 14:24 PM
          • Reply to Rent 2 Rent Tax Return
            by jpkeates
            Yes - that's essentially it.

            You should contact HMRC and tell them that you have a new source of income as a landlord and they'll tell you how they want you to report the income (probably an annual self assessment tax return).
            In a couple of years you'll need to do quarterly returns...
            03-08-2021, 17:36 PM
          • Reply to Rent 2 Rent Tax Return
            by dhoops97
            This is really helpful. My dad has changed the tenancy agreement and named me as landlord, so all payments are made to me. Therefore, all I need to do is declare all the income in the year as income and any payments to my dad, as expenses?

            Also, does this need to be in writing. At the moment...
            03-08-2021, 16:32 PM
          • Reply to Rent 2 Rent Tax Return
            by jpkeates
            It's legal.

            If you're named as the landlord on the tenancy agreements, your business is rent to rent.
            The amount you pay your father is a business expense, so you'll end up paying tax on the profit, but you need to declare the full amount as income and the payment to your father as...
            03-08-2021, 14:44 PM
          • HMRC Section 36 notice
            by KILOCHARLIE
            Wondering if anyone has any experience with one of these please?

            I received a letter from HMRC a few months ago stating they were investigating my property affairs. I was told I could provide documentation regarding it to help but if I didn’t wish then they would complete the check on...
            02-08-2021, 08:50 AM
          • Reply to HMRC Section 36 notice
            by Neelix
            If you were unemployed and receiving benefits and didn’t tell them you may need to brace yourself for contact from the DWP too...
            03-08-2021, 10:01 AM
          • Advice for DoT 100/0 or 99/1 is there a beneficial difference?
            by spikeg33
            I would appreciate some advice on getting our one rental property transferred into my beneficial interest as I have recently retired and now have the whole of my tax allowance to use against the rental income. I have researched and researched but would like some clarification about what to do . At present...
            02-08-2021, 14:07 PM
          • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
            by spikeg33
            I know it’s 1% difference but was really asking what the legal implications are of either transferring it into 100/0 or 99/1. I’m not an expert in this field in any way shape or form and am merely asking for advice....
            03-08-2021, 09:10 AM
          • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
            by theartfullodger
            Difference between 100:0 & 99:1?? 1%.
            03-08-2021, 09:02 AM
          • Reply to Advice for DoT 100/0 or 99/1 is there a beneficial difference?
            by spikeg33
            Thank you jpkeates for your advice. I will now proceed with 99/1 and happy that you have clarified the situation for me....
            03-08-2021, 08:51 AM