VAT Registration

Chubble69
Chubble69 Registered Posts: 6 New contributor 🐸
in VAT
I have had a query from one of my clients who is self employed but works as a sub contractor Carpenter
The company they do some work for, are themselves sub contractors for a large building company who build new build houses.
My client has asked about becoming VAT registered
The other workers have informed him that he will be able to invoice his contractor zero vat for his labour (as it is work on a new build site) but claim the VAT back on all relevant vatable expenses.
I am not a VAT expert and this appears a little too good to be true !!
As he is actually not working for the building company directly would he still be able to invoice zero vat for his labour?
Can any of you VAT experts let me know your thoughts/comments
Thank you

Comments

  • charlottemcclair
    charlottemcclair Registered Posts: 27
    It may seem too good to be true but the labour invoices he raises will be zero vat as he is working on building new houses and he can also claim back his vatable expenses providing he has the appropriate receipts. I had a client a while back who was in a similar situation, it is possible !
  • reader
    reader MAAT, AAT Licensed Accountant Posts: 1,037
    charlottemcclair said:

    It may seem too good to be true but the labour invoices he raises will be zero vat as he is working on building new houses and he can also claim back his vatable expenses providing he has the appropriate receipts. I had a client a while back who was in a similar situation, it is possible !

    Agree

    Definitely possible

    https://www.gov.uk/vat-builders/new-homes



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