I get this is kind of off topic but you all know your stuff & I'd appreciate some advice.
I'm doing up a house. It will cost around 200 k & take 4 months. The builder is my partner. We both own the house. He has 1 x business partner & is VAT registered.
I'm just trying to figure the most tax efficient way to do this. His accountant is useless.
Is this OK / optimum:
pay the business partner day rate + VAT.
don't pay my partner - why pay himself out of his (our) own money when he could just take what he needs.
buy the materials ourselves.
It's based on the following assumptions that might be wrong:
Thank yoiu.
I'm doing up a house. It will cost around 200 k & take 4 months. The builder is my partner. We both own the house. He has 1 x business partner & is VAT registered.
I'm just trying to figure the most tax efficient way to do this. His accountant is useless.
Is this OK / optimum:
pay the business partner day rate + VAT.
don't pay my partner - why pay himself out of his (our) own money when he could just take what he needs.
buy the materials ourselves.
It's based on the following assumptions that might be wrong:
- Am I right in saying if his business buys 100k of materials, he will pay 100k + 20k VAT. THEN, charge us 120k + 24k VAT. Total 144k.
- Whereas if we buy materials direct, we only pay 120k.
- Are there any NIC / pension type implications to him essentially taking 4 months off & not getting paid.
Thank yoiu.
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