Hi,
We entered a contract with a builder last May (to tune of 115k) to build an extension and loft conversion. He informed us that he could classify some of the work as "new build" so it would not attract VAT and the loft he said was a "grey area" which we could work around.
This represented a saving of 20+k so we went with it. He invoiced weekly (indicating VAT @ 0% on each invoice) and we paid via bank transfer.
After paying over 90k towards this contract, we've now fallen out (as one always does with builders) over issues of quality, costs, timescales and I'm concerned that he might now try and present me with a VAT invoice for 20% of everything to date.
I did some basic investigations and called HMRC and the work we are having done (all of it) should actually attract VAT at standard rate.
We did have contracts, project plans, payment schedules etc.. but nothing signed. In an SMS he indicated his intention to classify work as "new build" and the "grey area". As I understand it, and from speaking with a solicitor its not unusual for building contracts to not be signed.
Basically can he chase me for VAT if HMRC find out he's not declared everything and come after him?
Thank you...
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Legal matters
Builders and VAT
8 replies
bisousjaz · 28/02/2012 17:33
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