My client company is a property developer, buying delapidated properties, renovating them and reselling them. Generally the director / employee carries out the renovation but in this case he has engaged the services of a building firm to undertake some of the work. Is the building firm subcontracting to my client and therefore is the Construction Industry Scheme applicable in this scenario?
Thanks
Stormrider
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However
There is a deminimis limit built into the rules for construction services provided to property owners of up to £1,000,000 so use a separate company to own the property engage the builder as the contractor - make sure that is specified in the standard building contract and as long as the vale is below £1,000,000 you should be OK but might want to seek revenue confirmation to avoid tears later.
thanks
Thank you Paul that is very useful, i didn't know about the £1m exemption and interestingly i wasn't told of this when i called the CIS helpline!