[priority]

hi, can anybody help with my question.
do you have to pay VAT on build cleans?
im slightly confused about this
your help is much appreciated

[Andrew Briscoe]

If you are registered for vat then yes you charge,
if not registered, then you cant charge it.

When working for a builing contractor, you are classed as a sub contractor,
if you bill them for lets say £100 + 15 % vat ( £15) total £115.00,
as a sub contractor they will deduct if i remember correctly 18% of the net invoice
ie 100-18 =82, then add the vat back on= total £97
it may be 20% deduction cant remember, this is income tax, and is ofset against your end of year tax bill.

If Mrs Smith calls you to clean her new extension, you would charge £100 + vat if you were registered,
tax is only deducted when it has been subbed to you.

Hope you understand

Andrew

[priority]

thanks for your reply,
we have been told today that we should not be charging vat on new build cleans,because construction is zero rated,we havent been vat registered long and we have been charging vat on construction,
tax is deducted at 20%
sorry still confused

[martin19842]

hi there

build clean and reclean arre vat zero, sparkle is technically build complete and is vatable.

if you charge vat they just reclaim it.

the invoice will be subject to cis deduction of the labour element.

regards

martin

[priority]

thanks martin,
youve been a great help.

[priority]

now i can go ahead and reclaim £5500.00 that ive just paid in vat,due to accountant not informing us to register for vat,so this amount has been paid but we wasnt charging our contractor until december 2008
hope this all makes sense,still mad with accountant,she will not be doing our accounts again lol

[martin19842]

hi there

cant understand why youve paid vat if you arent registered for vat

that doesnt make sense

regards

martin

[priority]

we are vat registered,our accountant did not inform us early enough,so we was penalised for 6 months,so 6 months of vat had to be paid by us,but our contractor was not charged it, and the majority of our work is in the construction market

hope this clarifies our situation

regards

[martin19842]

hi there

sorry still doesnt make sense, you paid six months vat, but then you didnt charge the vat out, that wouldnt compute

if you didnt charge vat on sales, then all your purchases would have given you a vat repay due to yourself

if you did charge vat on sales then your clients paid you anyway.

regards

martin

[Griffus]

We mostly cover build cleans and mostly for the bigger firms out there.

We are VAT registered and as such charge VAT on all invoices, not just build cleans but for all services we carry out, even for domestic customers.

I thought it was as simple as you charge VAT if you are VAT registered, you don't charge VAT if you are not VAT registered. Either way you pay VAT as and when it applies but VAT can only be reclaimed against purchases if you are registered.

[BDCS]

New builds are zero vat rated but the builder claims it back on his vat return. Not all builders are part of the cis scheme - some stop my tax and some don't ! I'm not vat reg'd so I'm 15% cheaper for Joe public  The big firms don't seem to mind as they look at the bottom line.

[priority]

thanks for your replies.

i am ringing customs and excise today,and see what is correct or not.

its all too confusing

we are only a small company, will keep you informed of our progress with customs and excise
regards