VAT new build, builder witholds receipts - what to do??

AngelaBF

Hello,
I've recently finished building my house and have used a builder who charged for some additional works. These works were unavoidable and agreed and I paid promptly for his services. I am now submitting the VAT form to claim back VAT and he's denying me copies of the receipts for these excess works which means I won't be able to claim the VAT. Please can anyone advise where I stand on this as I could lose out on this claim otherwise particularly as the excess work was £10k!!
Thanks.

poppysarah

Ring the VAT man and tell him - nothing like someone from HMR&C to bring people round.

AngelaBF

Now I hadn't thought of that! he'll go bonkers but hey...

kazwookie

He has been paid , you have the work done, he should give you the reciepts as you have asked for them.


Do as poppysarah has suggested, I bet the builder has been dodging something!!

Premier_2

Are you sure the builder charged you VAT? If he did, he should provide you with a fully compliant VAT invoice.

However if the builder is not registered for VAT, he can't charge you VAT.

You can't reclaim VAT you have not paid.

Bean_Counter

As per the previous comments, are you sure that you have paid VAT? Most of the work should have been zero rated.

Have a look at this HMRC link unless you already have a copy.

AngelaBF

He has bought materials that have VAT on them that we have paid for and need to claim back the VAT - if that makes sense!

Bean_Counter

AngelaBF wrote: »

He has bought materials that have VAT on them that we have paid for and need to claim back the VAT - if that makes sense!

Not necessarily. I have cut this out of the link I posted above:

8.1 Will I be charged VAT on goods?

Retailers and builder’s merchants charge VAT at the standard-rate on most items they sell.
Builders, however, charge VAT on ‘building materials’ that they supply and ‘incorporate’ in a building (or its site) at the same rate as for their work. So, if their work is zero-rated or reduced-rated, then so are the ‘building materials’. This does not apply to ‘non-building materials’ (the VAT on which you cannot claim), which remain standard-rated.
Take care to ensure that you are charged the correct amount of VAT, as you can only reclaim VAT that has been correctly charged. If you are charged VAT in error, your builder may be able to obtain a VAT refund from Customs by adjusting his account with us. Further information on the liability of builders’ charges is in Notice 708 Buildings and construction

For example, you should not have been charged VAT on the timber frame kit in the first place and hence you should not have paid VAT and there would be none to reclaim, if I am reading your posted correctly.

Premier_2

AngelaBF wrote: »

He has bought materials that have VAT on them that we have paid for and need to claim back the VAT - if that makes sense!

I'm not sure if special rules apply to this situation you have, but generally VAT can only be reclaimed by the person who bought the goods.

In this case the builder originally bought the goods from the supplier, hence why he has the receipts. You bought the goods from the builder (together with his services). Although there may have been VAT on the original goods supplied by the supplier, if there was no VAT on the goods the builder supplied you (i.e. he wasn't registered for VAT), then you didn't pay any VAT and so cannot reclaim any.

If the builder was registered for VAT, then he would claim back the cost of VAT he paid the supplier using the receipts he has, and charge you VAT on those goods (and services) he sold onto you. He would need to give you a VAT invoice that he made out. You could then use that to reclaim the VAT.


Edit: Just seen the clarification by Bean Counter
It appears that under this scheme, even if the builder was registered for VAT, you shouldn't have been charged any VAT (i.e. if registered, it would be zero rated as it is a new build). You cannot claim back VAT you have not paid.
The builder can still claim back the VAT he originally paid as he sold the goods onto you. The builder would have known this and costed the job accordingly.

bootalishus

hi
just done our vat claim for our house we just built. If someone supplied & fitted a product it should have been zero rated for VAT (we were incorrectly charged VAT for our kitchen & windows as were fitted by the people who supplied them - VAT man wouldn't give us the VAT back so I had to go back to the kitchen & window people). If the builder supplied the extras and did the work incorporating them he should not have charged you VAT on his invoice for these extras- has he given you invoices for his works it should all be zero rated. If he has charged you VAT this was incorrect and you must get it back from him. If he didn,t charge you VAT for the extras (inc materials used) you can then not get the receipts off him to put on your VAT claim. Hope this helps.

Bean_Counter

AngelaBF wrote: »

He has bought materials that have VAT on them that we have paid for and need to claim back the VAT - if that makes sense!

Can you tell us what the goods in question? Not everything can be zero rated, but you can not claim back VAT if it is incorrectly charged in the first place.

Just for reference I did the VAT claim for a colleague earlier this year so am talking from experience.