DIY builder VAT question

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I apologize if this seems evident, but I shifted my career focus seven years ago and haven't dealt with much tax or accounting since. A friend has requested my help with a DIY knockdown and rebuild project for a small house. The intention is for him to reside in the new house, and he is not VAT registered. I am aware that the project qualifies for zero rating on many eligible costs. My concern is whether he should be concerned about the Construction Industry Scheme (CIS) and whether he needs to provide an end user declaration to the builder.

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paddle steamer
23rd Nov 2023 09:28

This might help.

Presume entire house being demolished and not using existing walls etc, if not paid advice certainly required.

Note vat self build scheme does not generally recover vat on professional services and some materials/appliances input vat cannot be recovered. Also note its time restraints re claim and having to front all the vat until end of build. If a contractor doing the bulk of the work he ought to be able to zero rate. Also, by sound of it, CIS likely not needed.

Notwithstanding, given vat on a house is possibly quite a big number, I would get him to talk to an accountant versed in vat and building.

Edit-re exhibiting to builder, the plans/permission plus warrants ought to suffice, however have not done one of these for nearly 20 years so approach may have changed

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By FrankTax
23rd Nov 2023 09:36

Have you done any research? There's a lot of guidance available online

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Replying to FrankTax:
By Leywood
23rd Nov 2023 10:12

Including on here.

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