Extensions Question

What happens if a builder becomes vat registered during a job?

Have received quotes from builders. One is not vat registered and is the cheapest by a couple of thousand. My concern is, what happens if he goes over the VAT threshold during the job? Will I have to then pay VAT on the accepted quote?

2 Answers

Best Answer

I would be surprised if an Extension Builder is not VAT Registered. If they have done 2 or 3 extensions (dependent on size) they should be VAT Registered especially with other work in between.

I would presume you would have to pay VAT - the same as if the VAT Rate changes - we have to charge that rate as soon as it comes into effect.

I take it you were Quoted and not ESTIMATED? Some people do not realise that a Quote is the actual price that the job will cost, based on all information received (that's why a detailed Quote is important - so you know what areas are covered) and an Estimate is basically guessing the price and you will more than likely pay extra.

Remember - do not just go for the cheapest - as that may well be the work you get "Cheap"! Don't forget to look at and check up on References.

Hope all goes well


Answered 30th Apr 2013

Castile Construction Limited

Member since 1 Jul 2008

No but you will need to pay VAT on the qualifying amount. If for example you have been quoted £20,000 and this would take them over the threshold by £5,000 you would only pay VAT on the £5,000 and they would issue you two separate invoices.

My advise to you is to speak to the builder and ask them about their VAT status (they must remember that the 12 qualifying months with regards to the VAT threshold are a rolling 12 months, not this current financial year, and it is their total gross sales figure). Find out how close they are to the threshold and explain why you are asking. If they are no where near it then you have nothing to worry about regarding the VAT.

Answered 30th Apr 2013

Liege Carpentry & Construction Ltd

Member since 26 Apr 2013

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