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Where Taxpayers and Advisers Meet

VAT - conversion from business to residential

stootz
Posts: 1
Joined: Wed Apr 19, 2017 4:58 pm

VAT - conversion from business to residential

Postby stootz » Wed Apr 19, 2017 5:02 pm

HI,

I am currently buying a grade II listed building which has been used for offices since the 1960's. I believe that we can pay 5% VAT rather than 20% on any work being undertaken but I am struggling to convince plumbers, electricians etc. to only charge me 5% - how can I convince them. Also - how do I claim money back when I've paid 20% on tiles, or bathroom furniture etc?

Any help would be greatly appreciated!

Thanks

sam

les35
Posts: 566
Joined: Wed Aug 06, 2008 3:09 pm

Re: VAT - conversion from business to residential

Postby les35 » Wed Apr 19, 2017 7:22 pm

The 5% rate only applies to purchases of services, not goods. If you intend to sell any of the units, you can claim (correctly charged) VAT.
But, proper paid-for advice is essential for such projects.

Chanmuganathan
Posts: 142
Joined: Wed Nov 24, 2010 2:39 pm

Re: VAT - conversion from business to residential

Postby Chanmuganathan » Thu Apr 20, 2017 1:43 pm

Reduced rates also apply for the supply of building material by contractors.

The ideal solution is having a single VAT registered contractor to do the construction/ or create one.

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: VAT - conversion from business to residential

Postby section 44 » Thu Apr 20, 2017 3:15 pm

I am struggling to convince plumbers, electricians etc. to only charge me 5% - how can I convince them
Try referring them to section 7 of Notice 708


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