You may be able to get your new tradesmen to invoice zero rated but you wont be able to get suppliers to do this as the supply of materials alone is always standard rated.

The only other option is to request recovery of VAT paid at the end of the project as a self build claim.

No not _ALL_ the VAT, definitely not....

The project is definitely covered by the VAT scheme as it's still a new house not a conversion or extension (see Notice 719 section 3.3 "Can I make a claim on a partly completed building"). It's not unusual for builders to stop at say first fix and for the owner to do second fix. You can still reclaim the VAT on items purchased upto the official council completion date.

Suppliers (eg builders merchants) should charge you VAT but you can reclaim most of this from the VAT man (i've done this). Make sure you get proper VAT reciepts. Till reciepts might not be accepted as they don't have your address on. B&Q will hand write you a VAT reciept on request for example. Note you can only reclaim VAT on some things - typically just things incorporated into the structure such as bricks, baths, light fittings, kitchen units etc. You cannot reclaim VAT on white goods unless you get them "free" with the kitchen and ideally not itemised on the reciept. You can't reclaim VAT on equipment hire either (eg scaffolding). . You can also claim for landscaping (trees etc) but only if they are a planning condition (eg shown on a landscaping document the planners asked for).

Services (eg contractors) should NOT charge you VAT. They should zero rate it. If you pay VAT in error you _cannot_ reclaim it from the VAT man. Note that your contractor may have to pay VAT on materials he supplies. He should not pass that on to you but should reclaim it when he does his own VAT return. He may need to supply your planning reference number. Some contractors are wary about this or may not be VAT registered - if it's a problem offer to buy the materials for him and reclaim the VAT yourself. Make sure the reciept is in your name and the goods delivered to site. Note that the errection and dismanteling of scaffolding is classed as a service and should be zero rated - but unfortunately it's invariably included free or on the bill with the actual hire of the scaffolding.

For full details see VAT Notice 719 - "VAT refunds for 'do-it-yourself' builders and converters".

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000150&propertyType=document

Also get a copy of Notice 708 - "VAT Buildings and construction" . The booklet tells builders and contractors what they should charge you VAT for and at what rate.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000513&propertyType=document

I kept a ring binder full of plastic sleeves and inserted the VAT reciept in date order. This is how the VAT man will want it.

When I did my claim the VAT forms were out of date. The form requested lots of info that was no longer required. Before you waste time call and ask which sections they really need you to fill in.

Generally I found the VAT line helpful. Ask for a call reference number if possible. They don't allways give them but if they do you can refer to it when you make your claim later.

It's almost impossible to take photocopies of the whole file so send your claim in by recorder delivery and ask for insurance to the value of the VAT claim at the post office.

Good place to ask questions on this is the forum here..

http://www.ebuild.co.uk/cgi-bin/forums/discus.pl

I have only now had the chance to catch up with all my posts. Thank you very much CWatters - very comprehensive and
actually very straightforward too! I may well get back to you and have implemented the same system you recommend with the file!

Ed