Self Building VAT Rules

The VAT rules can be a bit tricky at the best of times and as a Building Contractor it can be very difficult to ascertain what rate of VAT should be charged to a client.  It can be zero-rated if a new build, a reduced rate of 5% for some conversions or renovations or a standard rate (currently 20%) depending on the circumstances.  Below are some guidelines on what to charge but please make sure you check with HMRC first.  Please note that this information specifically relates to newly qualifying dwellings created by self-builders. I hope the pointers when it comes to self building VAT rules are helpful.

 

WHAT VAT RATE TO CHARGE SELF-BUILDERS?

 

New Build Houses

When you are constructing a new dwelling this should be invoiced at a VAT rate of 0%.  New build houses are just that; a brand new domestic property built from scratch.  It can also include a replacement property but only if the previous building is completely removed (and that includes the footings & drainage!)

 

Conversions

When a non-residential building is converted into a qualifying dwelling, this should be invoiced at a reduced rate of 5%.  It needs to be a stand alone property and not linked to a main property (like a granny annexe)

 

Renovations

If a property has not been lived in for 2 years or more, renovation works on that domestic property can be invoiced at a reduced rate of 5%

 

Listed Buildings

I’ve written a previous Blog on this but basically, since 1st October, 2012, works on Listed Buildings is now charged out at the standard rate (currently 20%) and not zero rated as it used to be.  However, any of the rules listed above still apply

 

 

The main thing to remember is that you should only zero-rate or reduce-rate your work once you are satisfied that the project meets the criteria set out in the relevant section of Notice 708.  You also need to keep a copy of the Planning Permission, and any listed building consent or other evidence, with your records so you can demonstrate why the standard-rate of VAT was not charged.

Further information can be found at www.hmrc.gov.uk/notice708

 

Waller Building Services

Our reputation in the commercial sector is growing fast. The services we provide include smaller refurbishments through to extensions and new builds. Waller Associates is Fensa, Chas, Constructionline and Safecontractor registered. We are also on the Kent County Council contractor list. All of our workmen are DBS verified. This means you can be assured that our staff are suitable to work in your school. You can also be confident that we are a company that is built on trust. If your school is planning any size of project, we would be delighted to provide you with a quotation. Furthermore we would be happy to price any maintenance or refurbishment works for you.

Building Services We Provide

We cover all of the building as well as glazing services that a workplace may need. This includes, toilet and kitchen refurbishments. We also install fencing, flooring and carry out complete new builds. Furthermore the glazing division carries out window repairs. We also install uPVC and aluminium windows and doors. View our case studies to see projects we have recently completed on our website.

Contact Waller Building

Based in Sittingbourne, Kent, we carry out works throughout Kent as well as the south east of England. If you would like a quotation on any size of building as well as glazing project, please contact us. Telephone 01795 424435 additionally email mark@wallerservices.com

Visit our twitter page to see what we are up to at the moment https://twitter.com/BuildingOnTrust

 

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EduKent Expo Conference 2017

EduKent Expo Conference 2017 – This year marks Waller Building & Glazing’s 6th year exhibiting at EduKent Expo & Conference. The EduKent conference is Kent’s leading event for the promotion and development of effective school leadership, management, learning and teaching featuring a high-level conference, inspirational workshops and a comprehensive exhibition of leading suppliers of services to schools and academies.

Waller Building & Glazing have worked in over 150 Kent Schools and we feel the Expo is the the ideal platform for Waller Building & Glazing to show services we provide and works we have previously undertaken.

If you are interested in attending this free event or would like further information please refer to the following website  http://www.edukentexpo.co.uk/

Come and visit us on stand 209 at the Kent Event Centre, Kent Showground on Wednesday 8th November 2017.

Waller Associates Building on Trust

All of Waller Building and Glazing Services work force are DBS cleared. We are also members of Fensa, Constructionline, Chas and Safecontractor. As a result you can be sure that we are a company that you can trust.

Contact Waller Building and Glazing Services

Based in Sittingbourne, Kent, we carry out works throughout the south east of England. For a quotation of any size of glazing project, please contact us call – 01795 424435. Additionally, you can email mark@wallerservices.com

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EduKent Expo Conference 2016

EduKent Expo Conference 2016 – This year marks Waller Building & Glazing’s 5th year exhibiting at EduKent Expo & Conference. The EduKent conference is Kent’s leading event for the promotion and development of effective school leadership. Additionally it is management, learning and teaching featuring a high-level conference, inspirational workshops and a comprehensive exhibition of leading suppliers of services to schools and academies.

Waller Building & Glazing have worked in over 125 Kent Schools and we feel the Expo is the the ideal platform for Waller Building & Glazing to show services we provide and works we have previously undertaken.

If you are interested in attending this free event or would like further information please refer to the following website  http://www.edukentexpo.co.uk/

Come and visit us on stand 165 at the Kent Event Centre, Kent Showground on Wednesday 9th November 2016.

Waller Associates Building on Trust

All of Waller Building and Glazing Services work force are DBS cleared. We are also members of Fensa, Constructionline, Chas and Safecontractor. As a result you can be sure that we are a company that you can trust.

Contact Waller Building and Glazing Services

Based in Sittingbourne, Kent, we carry out works throughout the south east of England. For a quotation of any size of glazing project, please contact us call – 01795 424435. Additionally, you can email mark@wallerservices.com

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New Apprenticeship Levy Scheme

This is a brief summary of how things are changing:

The new Apprenticeship levy scheme:

If PAYE turnover is over £3m then a 0.5% levy has to be paid in (with an initial tax allowance of £15k).  this equates to no levy being paid on the first £3m of PAYE turnover

If PAYE turnover is less than £3m then no levy will be paid.  However, any training will have to be paid for and subsidised by the government at a rate of 2:1 (ie. An electrician’s course will be £27k; £9k paid by the Company with £18k subsidised by the government)

 

Some of the new rules:

  • The levy will have to be paid on a monthly basis into an account.  If that fund is not claimed within 18 months then it will be lost and cannot be claimed back
  • A Company can only claim back the amount they have paid in, no more.  If they do any more training after their pot is empty then they will only get an additional 10% subsidy against it.  Bearing in mind there is a £15k tax allowance, a Company with £5m PAYE turnover would have paid in £10k but have a pot of £25k
  • The funds can ONLY be used for apprenticeship training
  • This levy is going to be in addition to the CITB levy!
  • To claim the funding, it will be split (For example with 16-18 year olds):

Recruit: £5,400

If a small business then an additional £2,700 can be claimed

If the apprentice completes and passes their course an additional £2,700 can be claimed

TOTAL: £10,800 per apprentice

NOTE: The apprentice has to pass by the 2nd attempt or the completion amount will not be paid

 

There are definite advantages of being below the £3m PAYE threshold:

  1. There is no additional levy to pay
  2. You can claim more per apprentice (£18k compared to £10,800)
  3. There is no limit to the number of apprentices as you have not got a pot that can dry up

 

As this is due to come in next year.  The advice I would give is take on an apprentice this year especially if they are 16-18 as they will still be free.

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Waller Associates Get Healthy!!

Kent Healthy Business Awards

Waller Associates Get Healthy!! Waller Associates Limited are joining the Kent Healthy Business campaign!  The Healthy Business Awards are self-assessment standards to help improve the health of our workforce and are a great way to:

  • Showcase our people, services and skills
  • Build a reputation for commitment to best practice in health, safety and well being
  • Support our business development and tendering activity
  • Support our policies and procedures
  • Show our compliance with laws and regulations

There are three levels of award:

  • Commitment
  • Achievement
  • Excellence

To kick-start this project, we are sending a questionnaire for our staff to complete anonymously and return so that we can assess our workforce and determine the best areas to focus on for our team.

Waller Associates

In 1993 Steve Waller started Waller Building Services after training as a quantity surveyor. Over the next few years the company grew and it was in July, 2000, when the decision was made for Waller Building Services to become a Limited company.  Therefore Waller Associates Limited was set up and Waller Building Services became a trading division within that company. In 2010, an opportunity arose that dove tailed well with the existing company structure.  A long established local Glazing company went into administration which produced the need for a commercial and domestic glazing supplier in the area.  Their commercial glazing manger, Paul Hayward, liked the way we operated as a company and therefore a new division was formed.

Waller Building Services

Clients include schools, local authorities and private customers. Our building services consist of smaller refurbishments through to extensions and new builds.

Waller Glazing Services

Our glazing projects include window, door and also glass repairs. We also carry out complete window and door installations. You can see examples of our glazing works by viewing the case studies on our website.

Building on Trust….

Waller Building and Glazing Services is registered to Fensa, Chas, Constructionline and Safecontractor. We are also approved by Kent County Council. Waller Associates is a company that you can trust. We would be happy to give you a quotation on any size of works. You can See examples of our building works by viewing the case studies on our website.

Contact Waller Building and Glazing

Based in Sittingbourne, Kent, we carry out works throughout as well as the south east of England. If you would like a quotation on any size of project, please contact us. Call 01795 424435. Additionally email mark@wallerservices.com

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Mark-Up Verses Margin

The difference between Mark-Up Verses Margin is frequently misunderstood. It can have serious consequences on your business.  For example:

You buy a good or service for £100 and put 50% mark up on it = £150.00.

You then want to offer a discount and think that if you offer 40% off you will still make a small profit.  WRONG!

40% off £150.00 = £90.00 which means you have made a £10 loss!

This is because the profit margin is 33% (not 50% as that is the mark up)

Waller Associates

In 1993 Steve Waller started Waller Building Services after training as a quantity surveyor. Over the next few years the company grew and it was in July, 2000, when the decision was made for Waller Building Services to become a Limited company.  Therefore Waller Associates Limited was set up and Waller Building Services became a trading division within that company. In 2010, an opportunity arose that dove tailed well with the existing company structure.  A long established local Glazing company went into administration which produced the need for a commercial and domestic glazing supplier in the area.  Their commercial glazing manger, Paul Hayward, liked the way we operated as a company and therefore a new division was formed.

Waller Building Services

Clients include schools, local authorities and private customers. Our building services consist of smaller refurbishments through to extensions and new builds.

Waller Glazing Services

Our glazing projects include window, door and also glass repairs. We also carry out complete window and door installations. You can see examples of our glazing works by viewing the case studies on our website.

Building on Trust….

Waller Building and Glazing Services is registered to Fensa, Chas, Constructionline and Safecontractor. We are also approved by Kent County Council. Waller Associates is a company that you can trust. We would be happy to give you a quotation on any size of works. You can See examples of our building works by viewing the case studies on our website.

Contact Waller Building and Glazing

Based in Sittingbourne, Kent, we carry out works throughout as well as the south east of England. If you would like a quotation on any size of project, please contact us. Call 01795 424435. Additionally email mark@wallerservices.com

 

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What is BIM and how does it effect the building industry?

In a nutshell, BIM stands for “Building Information Modelling”. The government wants to have this fully integrated into all government projects by 2016.

Is this going to happen? The answer is probably not but we need to ensure we understand what it is and be prepared for it.

The problem that building companies are going to face when tendering for government projects is when they are asked things such as “are you BIM level 2 ready?” At this, stage all we need to prove is that we are working towards it and, at the level of contract we go for, it will basically mean the ability to:

  • Receive and send information electronically
  • Produce 3D drawings
  • Have software which integrates on the platform being used for BIM (which could be something as simple as an excel spreadsheet in some circumstances)

In some instances, if we can receive and open tender documents and send them back, we are proving that we can already integrate at a BIM level!

To date, the following link is the best I have found which should explain what BIM actually is:

www.bimaskgroup.org/bim-faqs

 

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In the 2014 Budget the government announced that it would consult on options to improve the operation of the CIS scheme for smaller businesses and to introduce mandatory online CIS filing for contractors. The consultation has now taken place.

A key reform concerns changes to the requirements for subcontractors to achieve and retain gross payment status. There are proposals for simplifying and improving the compliance and turnover tests which will enable more subcontractors to access gross payment status. The current £30,000 turnover test for sole traders will not be changing but the government proposes lowering the threshold for the upper limit of the turnover test to help more established businesses with multiple partners or directors qualify for gross payment status. The current upper threshold of £200,000 could fall to as little as £100,000.

Some compliance tests would be relaxed so that it would be easier for subcontractors to retain their gross payment status.

Improvements will be made to the IT systems to provide a better CIS online service for contractors. These will include the online system for verification of subcontractors by contractors.

The government is also proposing to remove the option  of verifying subcontractors by telephone.

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Asbestos in Schools

Asbestos in schools – When the ‘A’ word is muttered around schools nowadays, there seems to be a serious case of hysteria with an assumption that you only need to look at it and you will suddenly die some horrible death!

Asbestos wasn’t banned in UK construction until 1986 and most buildings built before then will probably contain to some degree asbestos. As long as you know where it is and it’s managed correctly then it will cause you no problem whatsoever. So no need to panic!

BE AWARE

All commercial premises, including schools, must have by law an asbestos register indicating where asbestos will be located in the building. This should be updated every time works are carried out even if no asbestos is come across. This can save the school money in the long run as additional testing may not be required if records show that no asbestos is in the area.

If you are unsure what your responsibilities are then go to the HSE website section on education to find out more:

http://www.hse.gov.uk/services/education/asbestos-faqs.htm

 

MANAGING ASBESTOS

If you have an up to date register, as a contractor we would ask to see a copy of it before any works are carried out where there is a potential risk of coming across asbestos. If the register does not have enough information on the area we are working in, depending on the type of works, we may have to carry out intrusive testing (ie cutting holes in ceilings and walls) so we are 100{5649ae563538d4e4143b9a1c2946af7df32b9f4b4d437e9732645a466ec43c51} sure what we are going to disturb. If asbestos is found then as long as it is managed correctly it will cause no risk to the school whatsoever.

There are different types of asbestos, some notifiable and others non-notifiable. Some types we can deal with ourselves and others require licensed asbestos firms to come in. We have experience in all areas and can advise you on what course of action to take with the most economical solution. What we do is manage the problem for you to ensure not only are the works carried out safely and no-one is put at risk but legally you do not do something that is considered negligent.

All our workforce are Asbestos Aware and been on specific training courses. They are trained to identify asbestos and follow a correct course of action.

Over the past few months we have carried out works in numerous schools in Kent assisting them with asbestos related projects. These, along with others, can be found on our website www.wallerservices.com

 

CASE STUDIES

Client: Maidstone Girls Grammar School

Description of Works: Removal of asbestos sheet cladding to school building during summer holidays

Contract Value: £20,000.00

This project had notifiable asbestos so we had to employ a licensed contractor to remove the sheeting. All management, preparation, remedial works and making good was carried out by us.

A month prior to commencement we arranged a site meeting with the asbestos removal company, scaffolders, cladders and the client to confirm the extent of the works and how to encapsulate the whole area. All parties were in agreement with our proposed programme and fully aware of what the sequence of works was going to be.

The school chose us to manage this project as we were able to co-ordinate all parties concerned and keep them informed of the method of working, health and safety issues and progress on site.

Client: Sittingbourne Community College

Description of Works: Fire precaution and upgrading works to communal stairwell areas

Contract Value: £3,500.00

On carrying out fire barrier works to a staircase, panelling was removed and damaged asbestos boarding was uncovered. This was not on the asbestos register but fortunately, as our operatives are trained in spotting asbestos, works ceased before disturbing it and tests were carried out.

The area was closed off and a legal notification period of 2 weeks was given. Asbestos was then removed and the fire barrier work continued with no potential health risks to the school and with minimal disturbance.

We carried out all associated works as well as managing the asbestos removal.

Client: Meopham School

Description of Works: Improvement works to existing classrooms

Contract Value: £10,000.00

Whilst carrying out the initial stripping out of the classrooms, we came across an existing worktop that had a sheet of asbestos screwed to it. We cut through the worktop either side of the asbestos and it was then double wrapped in polythene. We arranged with an asbestos removal firm to collect and dispose of it in the correct manner.

We provided the school with documentation which could be attached to the relevant page of the asbestos register to show that that piece of asbestos has now been removed from the school.

Due to our operatives being trained in asbestos awareness, the asbestos sheeting was recognised and disposed of correctly ensuring no long term risk to the school.

Client: St. John’s Church of England Primary School

Description of Works: Windows and infill panel replacement works

Contract Value: £57,000.00

Before being awarded this contract, we were aware that the existing infill panels below the windows contained asbestos. Initially, the school were going to employ an asbestos company prior to our commencement but there were issues with keeping the building secure. There would have also been additional costs by separating the contract as temporary panels would have to be made and installed.

We were therefore asked to manage the entire project and by working in conjunction with the asbestos company we were able to keep the school completely secure as well as reduce the overall cost to the school. We had our asbestos company perform additional tests and the result concluded that due to the makeup of the panels we could work alongside the asbestos removal team. Temporary panels were therefore not required and we installed replacement insulated panels immediately after the old ones were removed. As an added precaution, air tests were also carried out to ensure no asbestos particles had been let loose into the atmosphere.

All certificates from the asbestos company were sent to the school so they could update their register.

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I attended today mock interviewing training for the 6th form at Westlands school. This was facilitated by CXK which is a charity that helps young people and adults to develop their skills, raise their aspirations and encourage them to reach their full potential.

The students were asked to produce a CV and apply for a position which they were then interviewed for. Although some of the pupils had applied for jobs in the past, for the majority this was the first time they had experienced actually being interviewed. It was the job of myself and other local business owners to give advice prior to the interview, actually carry out the interviews and then give some feedback afterwards.

To summarise, the advice I gave the students was as follows:

APPLYING FOR A POSITION

  • Ensure your CV is very well presented with NO grammatical errors
  • Include on your CV ALL your achievements no matter how small
  • Make you CV interesting and sell yourself!
  • Make sure the covering letter you send is targeted specifically at the Company who you are applying to
  • If you are offered an interview, go the day before to introduce yourself.  This will make your interview day a lot less stressful

AT THE INTERVIEW

  • Never be late
  • Try and be relaxed
  • Be yourself
  • Answer questions honestly
  • Keep eye contact
  • Dress smartly and for the occasion
  • Sit up straight and look confident
  • Don’t mumble

The feedback from all the interviewers was that the standard of the students was extremely high and although some were nervous beforehand they generally found the experience very helpful and realised that it was nowhere near as bad as they thought it would be!

What amazed me today was that writing CV’s, applying for jobs and interview techniques are not part of the school curriculum.  As far as I know only three schools in the Swale area actually do what we did at Westlands today giving the students there a great advantage when it comes to looking for a job.  I am not saying that they are all going to get the first job they apply for but at least they are going to be better prepared when they take their first step into the big world of employment out there!

I wish all the students I saw today the best of luck for the future.

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