Spot Posted February 21, 2012 Share Posted February 21, 2012 I'm just gob smacked by the potential costs involved of having an extension done. £1,000 - £1,200 per square seems to be the going rate and then there's the 20% VAT on top. In order to have useful space that is in proportion with the rest of the house our proposed 2 storey extension will add on about 100 square meters. So i'm looking at £20,000 or more of VAT (plus then all the VAT i'll have to pay on all the additional bits and pieces) and this is a deal breaker. If i've got to pay that much tax I just won't go ahead with the project, especially as i'd have to stick that cost on the mortgage so would be paying interest on it. In principle I refuse to pay more for the extension than the fekking house cost in the first place. Does anyone know of any clever legal ways to get around it? I've had a look on the HMRC website and there's not a lot there that could help. Quote Link to comment Share on other sites More sharing options...
Ascii Posted February 21, 2012 Share Posted February 21, 2012 From memory there's not much you can do. If the property is derelict, or has been uninhabited for some time them VAT is zero rated; the same for a new build. Extensions though they have you over a barrel. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted February 21, 2012 Share Posted February 21, 2012 DIY or to steal a universal truth from off topic, move house. Quote Link to comment Share on other sites More sharing options...
Lepista Posted February 21, 2012 Share Posted February 21, 2012 Buy all your stuff from ebay. Build a new house immediately adjacent to yours, then just knock through the walls. Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted February 21, 2012 Share Posted February 21, 2012 Does anyone know of any clever legal ways to get around it? 1. Use labour which is (legally) non-VAT registered. That will save halve your VAT bill. 2. Used "seconds" insulation. I use http://www.secondsandco.co.uk. Its about half price (you will need a lot of it for latest building regs). Some sizes/shapes are nonstandard or market but perfectly usable. 3. Do lots of work yourself and buy the materials yourself. I use less2build.com 4. Use cash-in-hand for some work that you don't need a guarantee for (e.g. labouring at £8/hour). 5. Don't use an architect on % commission. Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 DIY or to steal a universal truth from off topic, move house. Considered this but anywhere better in the same area is unaffordable and places we've looked at further out are overpriced tat that have not been an improvement on where we are. Plus we love where we are, just need a bit of extra room.... Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 There's not a lot of incentive for everyone else to help you avoid your tax. I hear ya! But there are some very kind and helpful people out there..... Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted February 21, 2012 Share Posted February 21, 2012 Considered this but anywhere better in the same area is unaffordable and places we've looked at further out are overpriced tat that have not been an improvement on where we are. Plus we love where we are, just need a bit of extra room.... 100 sq m is not "a bit" of extra room - by UK standards thats a 3 bed house. Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 1. Use labour which is (legally) non-VAT registered. That will save halve your VAT bill. 2. Used "seconds" insulation. I use http://www.secondsandco.co.uk. Its about half price (you will need a lot of it for latest building regs). Some sizes/shapes are nonstandard or market but perfectly usable. 3. Do lots of work yourself and buy the materials yourself. I use less2build.com 4. Use cash-in-hand for some work that you don't need a guarantee for (e.g. labouring at £8/hour). 5. Don't use an architect on % commission. Cheers! That's the stuff! Point 3 is not an option for me though, don't have the time to do the work myself and as the house will be uninhabitable (existing extension will need removing first meaning we lose kitchen, laundry room, etc...) any money saved would be lost by having to rent for longer. Quote Link to comment Share on other sites More sharing options...
Fishman Posted February 21, 2012 Share Posted February 21, 2012 I'm just gob smacked by the potential costs involved of having an extension done. £1,000 - £1,200 per square seems to be the going rate and then there's the 20% VAT on top. In order to have useful space that is in proportion with the rest of the house our proposed 2 storey extension will add on about 100 square meters. So i'm looking at £20,000 or more of VAT (plus then all the VAT i'll have to pay on all the additional bits and pieces) and this is a deal breaker. If i've got to pay that much tax I just won't go ahead with the project, especially as i'd have to stick that cost on the mortgage so would be paying interest on it. In principle I refuse to pay more for the extension than the fekking house cost in the first place. Does anyone know of any clever legal ways to get around it? I've had a look on the HMRC website and there's not a lot there that could help. There is a way. But the advice will cost you £20 grand - plus VAT Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 100 sq m is not "a bit" of extra room - by UK standards thats a 3 bed house. It's 2 bedrooms, a kitchen, a dining room and utility room to me. Quote Link to comment Share on other sites More sharing options...
Tonkers Posted February 21, 2012 Share Posted February 21, 2012 Knock a hole in the back of the house, take half the roof off and call a TV production company with a sob story. Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 Claim listed status. Worth a try. It's unusual and old (1894 and built with cavity walls) so it may qualify but wouldn't being listed then shaft me for the changes? Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 Knock a hole in the back of the house, take half the roof off and call a TV production company with a sob story. That's the winner! Quote Link to comment Share on other sites More sharing options...
robbie56 Posted February 21, 2012 Share Posted February 21, 2012 Learn Greek Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 21, 2012 Share Posted February 21, 2012 Thread on uk.d-i-y about it at the moment. Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 Thread on uk.d-i-y about it at the moment. Link? Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 21, 2012 Share Posted February 21, 2012 Link? http://groups.google.com/group/uk.d-i-y/browse_thread/thread/20aa825e21fcda25# Quote Link to comment Share on other sites More sharing options...
Goat Posted February 21, 2012 Share Posted February 21, 2012 Does anyone know of any clever legal ways to get around it? Easy, new builds are VAT free but extensions repairs etc are VAT able. Simply demolish your existing house and build a new one. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted February 21, 2012 Share Posted February 21, 2012 Pay the builder in cash? Quote Link to comment Share on other sites More sharing options...
Guest eight Posted February 21, 2012 Share Posted February 21, 2012 Easy, new builds are VAT free but extensions repairs etc are VAT able. Simply demolish your existing house and build a new one. I was going to suggest that in semi-jest, but does it actually have any legs? And what does a typical rebuild cost come in at, if you already own the land? Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 http://groups.google.com/group/uk.d-i-y/browse_thread/thread/20aa825e21fcda25# Cheers! Quote Link to comment Share on other sites More sharing options...
Spot Posted February 21, 2012 Author Share Posted February 21, 2012 I was going to suggest that in semi-jest, but does it actually have any legs? And what does a typical rebuild cost come in at, if you already own the land? I actually had vaguely considered this as I see to remember ages ago that a 3 bed detached could be built for about £80k. It must have been ages ago as I did a bit of research the other day and rough figures from assorted websites seemed to indicate about £215K for a 4 bed detached now. And you'll pay something like £12K or more to get the old one demolished and all the bits taken away. And council will have to give you planning permission to demolish it in the first place... Quote Link to comment Share on other sites More sharing options...
brickwall Posted February 21, 2012 Share Posted February 21, 2012 get an account set up with a builders merchant find some good prices first this prevent any one making money on materials saving you money,get a bricky with labourer both with a good knowledge of ground work get them to bring it up to plate height then chippy to put roof on roofer to felt batten and slate now your in the dry find other relevant trades to take you to the finish line and paint it yourself you'll save your self a sh-t load of money. Quote Link to comment Share on other sites More sharing options...
Venger Posted February 21, 2012 Share Posted February 21, 2012 I'm just gob smacked by the potential costs involved of having an extension done. £1,000 - £1,200 per square seems to be the going rate and then there's the 20% VAT on top. In order to have useful space that is in proportion with the rest of the house our proposed 2 storey extension will add on about 100 square meters. So i'm looking at £20,000 or more of VAT (plus then all the VAT i'll have to pay on all the additional bits and pieces) and this is a deal breaker. Why are the quotes so high? Because most builders are loaded up with work? I did some kitchen extension research a couple of months ago for a family member and was surprised at how much it would probably cost, going from a few examples on builders' websites. They've already got a small extension but it wasn't' built well first time around, even missing a plinth where there should be one. My advice was to wait until builders are forced to lower their quotes, or be happy with what you've already got and forget the extension wanted only for a flashy kitchen. Then there is all the headache of finding a trustworthy builder. Given experiences I've known from others left with shoddy work and builders not wanting to know, I wouldn't pay until the job done and satisfied with it. Clients often expect builders to advise them if their instructions will not meet regulations, but there is no implied term in contract that the builder must do so. That is why it is always best to get an independent architect, engineer or building surveyor to specify building works and administer a contract with the builder. http://www.telegraph...-a-builder.html Anybody Else Got A Problem With Rear Extensions? http://www.housepric...pic=171933&st=0 Quote Link to comment Share on other sites More sharing options...
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