Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • mexicano
    • By mexicano 19th Apr 17, 9:28 AM
    • 43Posts
    • 9Thanks
    mexicano
    Reclaiming VAT on front door
    • #1
    • 19th Apr 17, 9:28 AM
    Reclaiming VAT on front door 19th Apr 17 at 9:28 AM
    I live in a house that has been converted into two flats. I live on the ground floor and the owner of the first floor flat has rented it out via an agency.
    With his agreement I have replaced the front door as the old one was warping. He agreed to pay half the costs of the new door, he now wants the invoice for his records and "tax purposes"
    Does it mean that he can claim back the VAT on the door? If so, shouldn't I be getting half of the refund?
    Any advice will be greatly appreciated.
Page 1
    • TheCyclingProgrammer
    • By TheCyclingProgrammer 19th Apr 17, 9:32 AM
    • 2,402 Posts
    • 1,337 Thanks
    TheCyclingProgrammer
    • #2
    • 19th Apr 17, 9:32 AM
    • #2
    • 19th Apr 17, 9:32 AM
    Unlikely to be for VAT purposes, but they will probably be offsetting the cost against their taxable rental income.
    • mexicano
    • By mexicano 19th Apr 17, 9:35 AM
    • 43 Posts
    • 9 Thanks
    mexicano
    • #3
    • 19th Apr 17, 9:35 AM
    • #3
    • 19th Apr 17, 9:35 AM
    OK then. Will they be able to claim for the whole cost of the door or just half? I suppose HMRC won't know that there are two flats.
    Thanks
    • Stevie Palimo
    • By Stevie Palimo 19th Apr 17, 9:37 AM
    • 3,089 Posts
    • 4,367 Thanks
    Stevie Palimo
    • #4
    • 19th Apr 17, 9:37 AM
    • #4
    • 19th Apr 17, 9:37 AM
    OK then. Will they be able to claim for the whole cost of the door or just half? I suppose HMRC won't know that there are two flats.
    Thanks
    Originally posted by mexicano
    If you agreed to half the costs then what is the issue in giving the paperwork to the LL, What he uses it for is none of your concern really.

    I'm just telling you how it is.
    " I refuse to censor myself because it may offend someone. If you don't like me that's ok, I don't need your approval. "
    • mexicano
    • By mexicano 19th Apr 17, 9:44 AM
    • 43 Posts
    • 9 Thanks
    mexicano
    • #5
    • 19th Apr 17, 9:44 AM
    • #5
    • 19th Apr 17, 9:44 AM
    Thanks for your input Stevie, very helpful.
    • Rain Shadow
    • By Rain Shadow 19th Apr 17, 9:52 AM
    • 1,713 Posts
    • 3,021 Thanks
    Rain Shadow
    • #6
    • 19th Apr 17, 9:52 AM
    • #6
    • 19th Apr 17, 9:52 AM
    With his agreement I have replaced the front door as the old one was warping. He agreed to pay half the costs of the new door

    You agreed to pay for the door.
    He agreed to pay half your costs.
    Has he paid you half your costs?
    You can pick your friends and you can pick your nose but you can't pick your friend's nose.
    • Annie1960
    • By Annie1960 19th Apr 17, 9:58 AM
    • 2,326 Posts
    • 1,357 Thanks
    Annie1960
    • #7
    • 19th Apr 17, 9:58 AM
    • #7
    • 19th Apr 17, 9:58 AM
    Is he VAT registered? You can check this by checking any invoices/receipts he has sent you, as these should have his VAT number on them.

    If there is no VAT number, then he's not VAT registered.
    • frugalmacdugal
    • By frugalmacdugal 19th Apr 17, 10:05 AM
    • 5,755 Posts
    • 4,956 Thanks
    frugalmacdugal
    • #8
    • 19th Apr 17, 10:05 AM
    • #8
    • 19th Apr 17, 10:05 AM
    Hi,

    I live in a house that has been converted into two flats. I live on the ground floor and the owner of the first floor flat has rented it out via an agency.
    With his agreement I have replaced the front door as the old one was warping. He agreed to pay half the costs of the new door, he now wants the invoice for his records and "tax purposes"
    Does it mean that he can claim back the VAT on the door? If so, shouldn't I be getting half of the refund?
    Any advice will be greatly appreciated.
    Originally posted by mexicano
    So you wanted a new door and he agreed to share the cost with you?

    Which means you got a new door half price?

    Are you happy with the new door, does it do the job?
    Y'all take care now.
    • mexicano
    • By mexicano 19th Apr 17, 10:22 AM
    • 43 Posts
    • 9 Thanks
    mexicano
    • #9
    • 19th Apr 17, 10:22 AM
    • #9
    • 19th Apr 17, 10:22 AM
    He hasn't paid me yet. I am emailing him the invoice today and then he will pay me his half of the invoice.
    I am happy with the door and very happy that I only had to pay half.
    Thanks all for your comments.
    • TheCyclingProgrammer
    • By TheCyclingProgrammer 19th Apr 17, 1:08 PM
    • 2,402 Posts
    • 1,337 Thanks
    TheCyclingProgrammer
    OK then. Will they be able to claim for the whole cost of the door or just half? I suppose HMRC won't know that there are two flats.
    Thanks
    Originally posted by mexicano
    Should only be half though that may not stop him from trying to claim the entire cost of the door against his tax bill. That's not your concern though.
    • Kernel Sanders
    • By Kernel Sanders 19th Apr 17, 2:09 PM
    • 3,013 Posts
    • 1,252 Thanks
    Kernel Sanders
    Your OP implies provision of the invoice wasn't part of the agreement. You could tell the owner that you also intend to rent yours out, therefore making it assessable for CGT when eventually sold. This invoice could be set against any capital increase in value, therefore it has a value. On this basis you could negotiate 'compensation' for him getting your share of its value.
    • Annie1960
    • By Annie1960 19th Apr 17, 2:17 PM
    • 2,326 Posts
    • 1,357 Thanks
    Annie1960
    Is he VAT registered? You can check this by checking any invoices/receipts he has sent you, as these should have his VAT number on them.

    If there is no VAT number, then he's not VAT registered.
    Originally posted by Annie1960
    Just remembered rent is not VAT-able in any case.
    • Stevie Palimo
    • By Stevie Palimo 19th Apr 17, 2:19 PM
    • 3,089 Posts
    • 4,367 Thanks
    Stevie Palimo
    Your OP implies provision of the invoice wasn't part of the agreement. You could tell the owner that you also intend to rent yours out, therefore making it assessable for CGT when eventually sold. This invoice could be set against any capital increase in value, therefore it has a value. On this basis you could negotiate 'compensation' for him getting your share of its value.
    Originally posted by Kernel Sanders
    Righto that will keep the LL sweet and onside lol. legally there may be a route to do this but as for practical terms it will never happen in the real world and for individuals more so.
    " I refuse to censor myself because it may offend someone. If you don't like me that's ok, I don't need your approval. "
    • frugalmacdugal
    • By frugalmacdugal 19th Apr 17, 3:13 PM
    • 5,755 Posts
    • 4,956 Thanks
    frugalmacdugal
    Hi,

    gee whizz woa.

    This is getting complex.

    The person who owns flat above could reclaim vat, if registered for vat, (maybe a wee builder business), we don't know if he is a landlord, with various properties or just happened to get a flat left to him by an aunt or uncle dying, and rents it out.
    Y'all take care now.
    • Annie1960
    • By Annie1960 19th Apr 17, 3:27 PM
    • 2,326 Posts
    • 1,357 Thanks
    Annie1960
    Hi,

    gee whizz woa.

    This is getting complex.

    The person who owns flat above could reclaim vat, if registered for vat, (maybe a wee builder business), we don't know if he is a landlord, with various properties or just happened to get a flat left to him by an aunt or uncle dying, and rents it out.
    Originally posted by frugalmacdugal
    Why does this matter? Rental income is not VAT-able, regardless of how he came to be a landlord.

    If he is registered for VAT because he runs some other business, it is still not legitimate for him to reclaim VAT on his rental income.

    It is not complex. If you register for VAT, you sign up to HMRC terms and conditions, and they decide what goods and services are liable for VAT and at what rate.
    Last edited by Annie1960; 19-04-2017 at 3:30 PM.
    • McKneff
    • By McKneff 19th Apr 17, 3:42 PM
    • 35,226 Posts
    • 45,356 Thanks
    McKneff
    If the door is his, why is he not oating fot all of it
    No one can make you feel inferior without your consent
    • Annie1960
    • By Annie1960 19th Apr 17, 4:55 PM
    • 2,326 Posts
    • 1,357 Thanks
    Annie1960
    If the door is his, why is he not oating fot all of it
    Originally posted by McKneff
    It's a shared door.
    • Private Church
    • By Private Church 19th Apr 17, 5:16 PM
    • 117 Posts
    • 232 Thanks
    Private Church
    Jesus, why do people make a very simple question so convoluted..........


    OP the Simple answer is you send him an invoice for half the total cost (including the vat if he charges vat) and he (the landlord) will claim that amount back as a business expense.

    The VAT side of it is also very simple. The man who did the work sent you an invoice . He may or may not be VAT registered and that makes no difference because you are not vat registered or a business customer so you just pay the total amount he invoiced you for.

    You then send the landlord a bill for 50% of the total amount you paid to the builder. So if the builder invoiced you for £300 in total invoice the landlord for 50% (ie £150), don't mention VAT at all because you don't need too and shouldn't anyway because you aren't vat regsitered .

    If the landlord wanted to claim any vat back then he should have dealt with and paid the builder directly. The VAT doesn't come into the equation at all because you aren't registered for vat.
    Last edited by Private Church; 19-04-2017 at 5:22 PM.
    • Private Church
    • By Private Church 19th Apr 17, 5:28 PM
    • 117 Posts
    • 232 Thanks
    Private Church
    Hi,

    gee whizz woa.

    This is getting complex.

    The person who owns flat above could reclaim vat, if registered for vat, (maybe a wee builder business), we don't know if he is a landlord, with various properties or just happened to get a flat left to him by an aunt or uncle dying, and rents it out.
    Originally posted by frugalmacdugal
    Only if he was invoiced directiy by the builder and that builder was VAT registered. As the builder invoiced the OP and the OP is not registered for vat the landlord can't reclaim the vat.
    • unforeseen
    • By unforeseen 19th Apr 17, 5:38 PM
    • 1,310 Posts
    • 1,643 Thanks
    unforeseen
    TBH if i was paying half for something i would want a copy of the original invoices to ensure that i wasn't getting ripped off by the other party.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

197Posts Today

1,209Users online

Martin's Twitter