A 100% shareholder/director wants to get his property company to construct a new residence for him. One benefit of using the company is that they can zero rate the work for VAT.
From a tax point of view though can the company just charge him at cost or should a small profit be charged?
Thanks
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He can recover the vat anyway - if it is a new build and not a business premises. And you state it is a residence for himself.
https://www.homebuilding.co.uk/maximise-your-vat-reclaim/
the labour is zero rated on a new build.
Presumably any profit his solely owned company makes is liable for corp tax - and if he is paying his own company he should do it in the most tax efficient way possible.
But if there's no profit, then the supply is not mad in the course of furtherance of a business carried on by the company, and it could be denied recovery of its input VAT on the project.
There was a design and build thread recently, which also identified other issues too.
There was a design and build thread recently, which also identified other issues too.
Yes, I was looking for that but couldn't find it.