Fencing Question.

Fencing Question.

Postby Ken Jewell » Fri Mar 18, 2005 7:03 pm

Hello,

I have a question regarding back garden fencing.

I currently own my own property (bought from Sefton MBC over 8 years ago) while the neighbouring property is still owned by Sefton MBC.

The problem is the back garden fencing blew down in recent high winds and as a result it needs replacing.

So I contacted Sefton MBC with 3 quotes for the work on the understanding I pay 50% and they pay the other 50% of the total.

They are now saying they will pay half the total less the VAT; so my question is can the Council do this?

Is there any legal requirement for them to pay 50% of the cost including 50% of the VAT?

Thank in advance,
Ken.
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Postby despair » Sat Mar 19, 2005 2:02 am

Cant see their reasoning on that one

Bills have VAT added and if its a shared fence then 1/2 is 1/2
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Postby Danny » Sat Mar 19, 2005 3:22 am

This may seem unfair but by not paying the V.A T. they are doing you a favour and preventing you commiting an offence.

This is because you are not V.A.T registered therefore cannot pass on or claim back V.A.T. it is common practice for business not to pay /refund V.A.T to individuals / Public, it's not that they don't want to, it's because Custom & Excise rules regarding V.A.T won't allow it.
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Postby despair » Sat Mar 19, 2005 5:33 am

If thats the case its a bloomin silly law

but then what do we expect from HM Government

certainly not fair treatment!!!!!!!!!
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Postby twig » Sat Mar 19, 2005 12:25 pm

I see your point Danny but it still looks like dirty tricks from the council. Surely the contractor could give them two invoices, half each, and the council could then claim back it's VAT? Or, the council could take responsibility and invoice Ken for his half. Doesn't seem fair to me.
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Postby Ken Jewell » Sat Mar 19, 2005 12:38 pm

Thanks for all of your replies.

Its not me doing the work, it would be a VAT registered fencing company so all I would be doing is passing on their invoice to the council.

I have to pay the VAT, so I dont see why they cant pay half.

I do have my own VAT registered comapny in Electronics, however I could not claim the VAT for a fence as a legitimate expence through my own books.

Regards,
Ken.
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Postby Danny » Sun Mar 20, 2005 1:10 am

You cannot Charge, claim back, collect or pass on V.A.T if you are not registered, neither can you pay or be expected to pay V.A.T to anyone who is not registered for V.A.T. V.A.T is a Tax collected by bussiness on behalf of the goverment. Easy solution, contact the council and ask why they won't pay the V.A.T.
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Postby patdavies » Tue Mar 22, 2005 9:34 am

Danny wrote:This may seem unfair but by not paying the V.A T. they are doing you a favour and preventing you commiting an offence.

This is because you are not V.A.T registered therefore cannot pass on or claim back V.A.T. it is common practice for business not to pay /refund V.A.T to individuals / Public, it's not that they don't want to, it's because Custom & Excise rules regarding V.A.T won't allow it.


Absolute nonsense. I am a private individual and I pass on VAT all the time. As I am not VAT registered, I can't claim the tax I pay as an input tax and then add VAT to the onward bill. But absolutely nothing stops me saying, " here is the reciept including VAT and you need to reimburse it all to me". I do this everyday, for expenses as an example.

There is no reason whatsoever for the council concerned not to reimburse the VAT. Of course, if they were billed directly by the VAT registered contractor, they could reclaim.

They are not "preventing you from breaking the law"; they are trying it on.
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Postby Danny » Fri Mar 25, 2005 9:11 pm

I don't belive this posting has caused so much confusion and it not even about a garden or building dispute but V.A.T ( How much is the V.A.T? )

Expenses are completly different. You pass the receipt onto whoever pays them including the V.A.T and you are reimbursed, perfectly legitimate. If you are writing out receipts plus / including V.A.T and are not entitled to do so, you are breaking the law.

As the council and Ken are dividing one bill 50/50 which is being paid for in the first instance by Ken, he cannot claim half the V.A.T back or pass it on as V.A.T as he is not V.A.T registered, neither can the council legally pay it or claim it back.

He could ask the council to pay the bill / invoice direct and in full to the fencing Co, then invoice him half, the bill / invoice from the council may show half plus *V.A.T. that way they claim back the V.A.T in full on the original receipt and forward the *V.A.T collected from Ken to the VAT man. *Assuming they are entitled to charge V.A.T

I don't know why ken is planning on sending the whole bill to the council, he may need it should any problems arise with the fence / workmanship in the future
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Fences/VAT

Postby nigelrb » Mon Mar 28, 2005 3:06 pm

Hello.
Why not adopt the simplest solution to this and obtain quotes from a contractor who is not VAT registered and is therefore not obliged to levy VAT. The end result would also be a cheaper fence!
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