Hi all, Apologies if this is in the wrong place. It is a financial question about building so I wasn't sure where to put it!
I read something somewhere (on another board but cannot for the life of me find it now) that I would appreciate your input on.
We are currently deciding whether to build our new home by direct labour or to contract a builder to do the whole job. Obviously one will be a lot cheaper than the other but will take more time, require us to acquire a few new skills etc... Another factor is the VAT issue and this is where I would like your input.
I read that if you cross the border and buy (for example) your plumbing supplies and give your plumbers vat number, VAT will not be charged on the items. In that case, a cheaper product becomes even more cheap.
IF this is true... does the following also apply... I am self employed and have a VAT number myself. Does this mean that I can cross the border and buy building materials and give my own VAT number? Does this mean that I will pay no VAT at all?
If this is the case, firstly is it legal? I think it is highly unlikely that it is legal but am somehow hoping it's just a loophole and there is some way of reducing our build costs.
If it is legal, is there a payback at this end? Like if you buy items online in the US and then pay the duty when the parcel arrives. If there is a payback, does it make it worthwhile to shop up north or would we end up paying the same amount, just by different means?
I appreciate any replies on this. I am NOT trying to pull a fast one and don't want to do something that would prevent me sleeping soundly at night! It is just that it is an interesting option and I would like to explore it to see where it takes us.
Obviously what we'll be building is our house but one of the rooms there will be my office which is the sole premises for my business. If that makes any difference!
Thanks in advance for your replies.
AP
I read something somewhere (on another board but cannot for the life of me find it now) that I would appreciate your input on.
We are currently deciding whether to build our new home by direct labour or to contract a builder to do the whole job. Obviously one will be a lot cheaper than the other but will take more time, require us to acquire a few new skills etc... Another factor is the VAT issue and this is where I would like your input.
I read that if you cross the border and buy (for example) your plumbing supplies and give your plumbers vat number, VAT will not be charged on the items. In that case, a cheaper product becomes even more cheap.
IF this is true... does the following also apply... I am self employed and have a VAT number myself. Does this mean that I can cross the border and buy building materials and give my own VAT number? Does this mean that I will pay no VAT at all?
If this is the case, firstly is it legal? I think it is highly unlikely that it is legal but am somehow hoping it's just a loophole and there is some way of reducing our build costs.
If it is legal, is there a payback at this end? Like if you buy items online in the US and then pay the duty when the parcel arrives. If there is a payback, does it make it worthwhile to shop up north or would we end up paying the same amount, just by different means?
I appreciate any replies on this. I am NOT trying to pull a fast one and don't want to do something that would prevent me sleeping soundly at night! It is just that it is an interesting option and I would like to explore it to see where it takes us.
Obviously what we'll be building is our house but one of the rooms there will be my office which is the sole premises for my business. If that makes any difference!
Thanks in advance for your replies.
AP