Cost of a new build in northern ireland

saverbuyer

Stupid question maybe but when people quote build costs are these inclusive of VAT? Obviously I know you can claim VAT back.

CL

saverbuyer wrote: »

Stupid question maybe but when people quote build costs are these inclusive of VAT? Obviously I know you can claim VAT back.

If you get a contractor there is no VAT. It is zero rated. But if you finish the interior yourself, you claim back VAT on the materials, i.e. tiles, bathrooms (if supply only), curtain poles, light fixtures, towel rails, paint, etc.

Items that are supplied and fitted in a new build are generally zero rated (fireplaces, kitchens, tarmac, wooden floors, etc.)

saverbuyer

So Paul's figure of £68 does this include 20% VAT. Earlier in the thread he had a "gut feeling" of £50 is this the cost after claiming the VAT back. Are all building materials zero rated or do you claim back to the 20% VAT element?

CL

saverbuyer wrote: »

So Paul's figure of £68 does this include 20% VAT. Earlier in the thread he had a "gut feeling" of £50 is this the cost after claiming the VAT back. Are all building materials zero rated or do you claim back to the 20% VAT element?

My understanding is that the £68 per sqm is to a contractor, so is zero rated, so has no VAT.

Paul correct me if I have misunderstood.

Mistral001

ciaran120 wrote: »

What did I not include?

Design costs: architect, quantity surveyor , structural engineer, supervision for mortgage purposes

polpoo

If you are building a new property, most of the costs are zero rated. you either dont pay for them at source (generally items bought through the builder) or you reclaim the VAT upon completion.
If you are extending or refurbishing, then i am afraid you have to pay VAT on everything at 20% (unless the property has been empty for 2 years, in which case the VAT drops to 5%)

In response to saverbuyers question, the price a builder quotes generally excludes VAT. So the £68 per sq foot is the price before any VAT is applied.

Well done with the house pgilc1, it look great and i wish you every happiness in it and many thanks for the great feedback. As an architect, I think its really important that people understand how much a well built and well designed house actually costs. Costs of £45-50 per sq foot to build your home, in my opininion, are unrealistic.

saverbuyer

polpoo wrote: »

If you are building a new property, most of the costs are zero rated. you either dont pay for them at source (generally items bought through the builder) or you reclaim the VAT upon completion.
If you are extending or refurbishing, then i am afraid you have to pay VAT on everything at 20% (unless the property has been empty for 2 years, in which case the VAT drops to 5%)

In response to saverbuyers question, the price a builder quotes generally excludes VAT. So the £68 per sq foot is the price before any VAT is applied.

Well done with the house pgilc1, it look great and i wish you every happiness in it and many thanks for the great feedback. As an architect, I think its really important that people understand how much a well built and well designed house actually costs. Costs of £45-50 per sq foot to build your home, in my opininion, are unrealistic.

Sorry what I am getting at is this.

I'm Mr Builder, I go to the builders yard and but a tonne of bricks, A load of timber and some electrical wire. Am I Mr bUILDER charged VAT or are most building supplies ZERO rated? Or do I buy all this at x+ 20% and claim this back?

CL

Builders would be VAT registered and would pay VAT for their materials at the point of purchase. They will then claim the VAT back.

If you self build a new house and go to a builders merchant and buy materials you are charged VAT. You can then claim that VAT back at the end of the build when the building control sign the property off.

saverbuyer

CL wrote: »

Builders would be VAT registered and would pay VAT for their materials at the point of purchase. They will then claim the VAT back.

If you self build a new house and go to a builders merchant and buy materials you are charged VAT. You can then claim that VAT back at the end of the build when the building control sign the property off.

Thanks a lot CL. That is what I was after. And presumably The contractor will charge me VAT on there services which I can claim back also.

So presumably this £68 per sq foot includes VAT vhich I can claim back. So my actual cost will be £68 minus VAT.

polpoo

Mr Builder will deal with the VAT not his client.
VAT will be applied to most materials at source but Mr Builder will reclaim (or offset) this so in effect Mr & Mrs Client aren't charged VAT
So Mr Builder will be charged x + 20%