Good morning all
Main Contractor is insisting (rightly) that Subcontractor Window Fitting Company invoices at 5% (Non-residential conversion). Subcontractor wants to invoice at 20% as is on a FRS of approx 10% and would therefore lose out if was to invoice at 5%. I know that technically the Subbie should be invoicing at RR 5% and any other amount would, statute-wise, not be Output Tax, but is there a solution to this problem, or is this just a quirk of the FRS that the Subbie should have anticipated being within the Construction Sector? Note, there is an element on this site that is New Build, Zero Rated, so the problem will become worse for Subbie.
Additional note - I know the Contractor will have to issue a Certificate 18.1/18.2
Further Note - My interest is neither as Contractor nor Subbie. More of an adjudicator keeping all parties happy.
Thank you all.