VAT-subcontracting-new builds homes

[sairu5]

Hello

I'm starting a small subcontracting business in construction. At the moment we have LTD. company that receives money and then pays to our self-employed bricklayers. We do direct work for main brickwork contractor on site. Most of our work is done for residential developers - new homes.

We earn extra money on difference between rates paid by main contractor to us, and what we pay to our bricklayers.



Questions:

As we build new homes are we qualify for zero-rate VAT?

We will need register for VAT very soon. I am afraid we will lose business to other self-employed bricklayers that do not need to charge VAT and we do not have where to offset this VAT.

Do you have any ideas how to make it work?

Thank you for help

[les35]

If you are building new homes, your services are zero rated. So, when you register for VAT, you are better off, as you will be able to reclaim input tax.

[RMC]

For exactly what qualifies for zero-rating, see section 3 Zero-rating the construction of new buildings of VAT Notice 708. Ensure that your invoices give full details of work done, and that where necessary you receive from the customer an appropriate certificate.

It may be advantageous to backdate VAT registration.

[les35]

And you might even look at the rules for Self-Billing; https://www.gov.uk/government/publicati ... lf-billing

[pawncob]

You might also look at the HMRC rules for determining Self Employment. (and be prepared to employ your brickies)

[pawncob]

And register for C.I.S.