# VAT on a new building - what about outbuildings?



## kit279 (26 September 2010)

I'm trying to build an outbuilding at the back of my garden - it's going to be a sort of open fronted barn structure with block back and side walls and braced posts at the front.  I can use it then for barn storage and also put in some internal stable partitions as required.  Could also be used as a garage or car port if needed.  Basically, it doesn't have to be stables, it's designed to be an all-purpose outbuilding.

The question is whether this counts as a new building (it's being built from scratch including foundations etc) and do I have to pay VAT?

I have a choice between two builders - one VAT registered and one not.  I'd like to go with the VAT-registered one but the VAT is likely to be 20% so a serious saving if I don't have to pay it.

Can anyone give me any advice?


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## Lynsey&Smartie (26 September 2010)

I'm pretty sure that you would have to pay VAT if you went with the VAT registered builder, the building of new dwelling houses is zero rated but this doesn't extend to building new outbuildings it is only for a building that someone is going to live in i.e. a house or a flat or certain conversions of existing buildings to residential use.

We paid VAT on the building of our stables and garage in the garden.

I'm not a VAT expert though although I am a chartered tax advisor.


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## 3DE (26 September 2010)

If it is for agricultural use you can claim the vat back, but you have to have a holding number. If it is on a house plot you are liable for vat. HTH


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## little_critter (26 September 2010)

I'd compare prices honestly. The non VAT registerd builder may charge the 'market price' anyway.
He doesn't have to pay VAT to the VAT man but he can't claim back VAT either so he may not be all that much cheaper - see what the quotes say.


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## ttt (26 September 2010)

If the non-VAT person is charging £5000 and the VAT person is charging £4000 plus VAT (£4800) then you would be paying less to the person who is VAT registered. VAT should not be a consideration unless you are VAT registered?


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