Funding extension without being hit with VAT

Dedre

One way of doing it, is to find a builder who isn't VAT registered.

As VAT is based on turnover, this is fairly rare as most builder's charge an 'all-in' cost for materials and labour. However, I know a few smaller builder's who charge labour only with the customer providing materials (in some cases via the builder's trade account so they get trade discount, but with the customer paying the invoices directly).

00ec25

Dedre wrote: »

One way of doing it, is to find a builder who isn't VAT registered.

As VAT is based on turnover, this is fairly rare as most builder's charge an 'all-in' cost for materials and labour. However, I know a few smaller builder's who charge labour only with the customer providing materials (in some cases via the builder's trade account so they get trade discount, but with the customer paying the invoices directly).

actually not that rare for builders to do it that way, but as you note, the key is the materials must be ordered and paid for by the client, not by the builder

in the ideal world there would also be a documented contract setting out the position, but who knows of builders that use contracts when dealing direct with punters !

Wookey

le_loup wrote: »

So you weren't born in hospital, never get sick, weren't educated, don't need protection from criminals, don't drive on roads, won't be drawing a state pension.
My, you are lucky.

Reading what was written is one thing thing, understanding it, seems to be something completely different, exactly where did i mention those things that you are assuming?

"Spongers" is a term commonly used when referring to the people who don't want to work and would rather claim benefits than contribute to society and help pay for those things you mention.

In regard to the OP, a builder legally has to charge VAT due to the lowish threshold and him doing just one renovation a year would probably be enough to put him over that threshold, the OP can do all the work himself thereby legally avoiding VAT on the labour or he can seek out the relevant sub contractors who operate below the VAT threshold and would therefore not be charging VAT on there labour, all perfectly legal and above board.

le_loup

Wookey wrote: »

"Spongers" is a term commonly used when referring to the people who don't want to work and would rather claim benefits than contribute to society and help pay for those things you mention.

And of course, the country is so over-run with such people that some others become obsessed to the point of commenting about it when it has nothing to do with the subject in hand.
I do know what spongers are and I know exactly where you are coming from.