Managing a Self-Build

Sanddunes_&_Saltyair

Hi does anyone have any advice about managing the finances of a self-build please?


I was planning to set up a new bank account from which all bills associated with the build will be paid to make managing money a little easier. I am particularly hoping that it'll make doing the VAT refund at the end easier! Has anyone else done something similar? What would you recommend? What are your top tips for managing and keeping track of the build budget?


Thanks

lincroft1710

Sanddunes_&_Saltyair wrote: »

What are your top tips for managing and keeping track of the build budget?

Not changing your mind about things mid-build unless it is a genuinely cheaper option.

ProDave

It's not rocket science.

All I do is write down in a book EVERY item I spend on the house, and file the receipts in a box file ready for the VAT claim at the end of the build.

They will not want to see your bank statements, so no need for a separate bank account. It's all about filling in the form and presenting a stack of receipts showing the VAT you have paid.

More important is to ensure you are not wrongly charged. you can only claim back the VAT you pay on materials. If you employ someone to supply and fit something the the new house, they should zero rate both the labour and materials as it's a new house. If they wrongly charge you VAT you will not be able to reclaim that.

Sanddunes_&_Saltyair

ProDave wrote: »

you can only claim back the VAT you pay on materials. If you employ someone to supply and fit something the the new house, they should zero rate both the labour and materials as it's a new house.

Sorry ProDave I don't understand. As you said in the first part of your message I thought it was only materials that were VAT exempt. Do you mean that any labour carried out on the house should be VAT free? Does that extend to other services associated with the build e.g. architect, engineer, surveyor, builder, electrician, plumber etc? Or what's the scope for VAT free labour?

Thanks.

Doozergirl

Sanddunes_&_Saltyair wrote: »

Sorry ProDave I don't understand. As you said in the first part of your message I thought it was only materials that were VAT exempt. Do you mean that any labour carried out on the house should be VAT free? Does that extend to other services associated with the build e.g. architect, engineer, surveyor, builder, electrician, plumber etc? Or what's the scope for VAT free labour?

Thanks.

You must read the guidance provided to contractors as this fills in the gaps.
https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction#zero-rating-the-construction-of-new-buildings

You're not going to grasp all of this quickly. It is complicated but it is definitely worth reading the guidance several times over.

You can reclaim on materials because materials are always 20% VAT at supply.

Labour should be charged with zero VAT to start with.

Materials that come as part of a supply and fit contract are also charged at zero. So, if you employ one contractor to build the house and they buy the materials, then you never outlay the VAT in the first place. If your kitchen is supplied and fitted by the same company, then they zero rate it.