VAT on 9 month building refurbishment

[zalim]

We are a small VAT company and are about to do a residential house refurbishment for an individual who is not VAT registered, he will be renting the property after renovation.

Issue is that the total cost will only be paid after the works are completed. Leaving aside the issue of risk of non payment etc, the refurb will be over 9 months, now when do I invoice the client;

1 - can it be at the end of the project (one invoice) or
2 - do I have to invoice in stages (obvious cashflow issue)

If anyone can shed some light on this would be appreciated.

Thanks

Zalim

[Generix]

We are a small VAT company and are about to do a residential house refurbishment for an individual who is not VAT registered, he will be renting the property after renovation.

Issue is that the total cost will only be paid after the works are completed. Leaving aside the issue of risk of non payment etc, the refurb will be over 9 months, now when do I invoice the client;

1 - can it be at the end of the project (one invoice) or
2 - do I have to invoice in stages (obvious cashflow issue)

If anyone can shed some light on this would be appreciated.

Thanks

Zalim

If the works only take 9 months then you can issue invoice at the end.

If the works extend for more than 12 months then I think you will have to issue at least 1 invoice - can't remember off the top of my head if (a) this only applies to continuous supplies of services and (b) whether such works would counta s continuous supplies of services.

If you are under the cash accounting threshold you could opt to do cash accounting anyway?

[section 44]

1 is OK.

[zalim]

Thanks for the prompt response, much appreciated.

Zalim

[zalim]

Thanks for the prompt response, much appreciated.

Zalim