I've bought a house which is in need of renovation and qualifies for the reduced 5% VAT rate on works/materials due to being empty for over 2 years. I have read the relevant HMRC pages and it only seems to work if hiring a VAT registered building company to do the work. The building contractor bills you the reduced rate on work and materials then I guess claims back the materials VAT from HMRC.
However, the builder I was planning on using is non VAT registered so it would seem I would lose out on the VAT reduction on materials. I am wondering if there is an alternative way to buy materials via my own Ltd. My Ltd becomes the supplier but does not actually make or lose any money in the process. Does that sound in any way viable or am I clutching at straws? Are there issues with running multiple types of business through the same company?
Thanks!
However, the builder I was planning on using is non VAT registered so it would seem I would lose out on the VAT reduction on materials. I am wondering if there is an alternative way to buy materials via my own Ltd. My Ltd becomes the supplier but does not actually make or lose any money in the process. Does that sound in any way viable or am I clutching at straws? Are there issues with running multiple types of business through the same company?
Thanks!
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