New VAT and Building Work

flotess

I wonder if anyone could help me here. We're having some building work done and have paid in stages up to now. The project is due to finish in the next couple of weeks. Clearly the original estimate had VAT at 17.5%, am i correct in saying that the total due (ie final payment) should bring the total project cost VAT down to 15%?

The builders have been fabulous (if anyone needs a A1 builder in the AYlesbury area let me know!) and I don't want him to suffer due to the tax change. I believe that materials he has bought would be at the 17.5% rate, but i guess he claims that back so shouldn't be out of poket if I pay the final bill at 15%?

Many thanks for your time!

cheers,

/mark

flotess

Cheers!!!

And I'm correct in saying that he doesn't loose out by going back at 15%?

/mark

esuhl

I think I'm right in saying that, as a trader, he won't pay VAT on his purchases at all. It's only when goods/services are sold to a consumers at the end of the retail chain that VAT is applied.

Thus, it won't cost your builder any more to pass on the VAT reduction.