Hi everyone,
My girlfriend and I have just bought a new build from a developer which is not yet complete.
He has given us a £5200 contribution to a kitchen of our choice, if the kitchen we choose comes in at more than £5200 we obviously pay the extra. The builder then pays for kitchen.
We have chosen a kitchen from Howdens which comes to the sum of £6400 + VAT (£1280) = £7680 Total.
Being a new build, the builder will claim back the VAT on most of the materials he buys, including the fitted kitchen (have checked HMRC, fitted kitchens qualify.) But the builder has charged us full price for the kitchen, £7680??
Maybe im totally wrong but I presumed we would be charged the price exc VAT (£6400) and then the builder reclaim the VAT later on??
Otherwise I could end up paying him the £1280 VAT and then he may also claim £1280 from HMRC. Ending up having £2360 in his a*** pocket.
Thought I better check before I discuss it with him.
Thanks in advance
My girlfriend and I have just bought a new build from a developer which is not yet complete.
He has given us a £5200 contribution to a kitchen of our choice, if the kitchen we choose comes in at more than £5200 we obviously pay the extra. The builder then pays for kitchen.
We have chosen a kitchen from Howdens which comes to the sum of £6400 + VAT (£1280) = £7680 Total.
Being a new build, the builder will claim back the VAT on most of the materials he buys, including the fitted kitchen (have checked HMRC, fitted kitchens qualify.) But the builder has charged us full price for the kitchen, £7680??
Maybe im totally wrong but I presumed we would be charged the price exc VAT (£6400) and then the builder reclaim the VAT later on??
Otherwise I could end up paying him the £1280 VAT and then he may also claim £1280 from HMRC. Ending up having £2360 in his a*** pocket.
Thought I better check before I discuss it with him.
Thanks in advance