Could an accountant answer a very simple question for me?

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firsttimerSW11
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Could an accountant answer a very simple question for me?

Postby firsttimerSW11 » Wed May 03, 2017 5:14 pm

As the subject suggests, I have a very simple question relating to VAT that I'd be very grateful if someone with knowledge of VAT/accountancy could answer for me?

Huge thanks in advance

FT
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Annabel (admin)
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Re: Could an accountant answer a very simple question for me?

Postby Annabel (admin) » Wed May 03, 2017 6:26 pm

Hi
Are you able to post the question?

Can try and ask around if I know what it relates to!

Totally understand if that's not appropriate...
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firsttimerSW11
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Re: Could an accountant answer a very simple question for me?

Postby firsttimerSW11 » Thu May 04, 2017 10:48 am

Thanks for coming back to me.
In essence, I'm having some building work done and we have agreed figures etc. We also agreed to pay the firm of surveyors we are using 14%. However they are billing us 14% of the cost of the "building work + VAT" and then VAT on their fees. I understand that VAT needs to be paid on building work and also that VAT needs to be paid on the surveyors fees.
So let's say my building work is £100k. Plus VAT @ 20% ie £20k, so total is £120k. The surveyors are billing me 14% of £120k rather than 14% of £100k. Which seems all wrong.
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AbbevilleMummy
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Re: Could an accountant answer a very simple question for me?

Postby AbbevilleMummy » Thu May 04, 2017 1:40 pm

I agree that it seems wrong, but it isn't really an accounting or VAT question, more what you agreed that the 14% would be calculated on in the contract. Theoretically it could say 14% of anything, it is just a way for them to calculate their fees. If it does say that it is 14% of the gross builders costs (ie including VAT) then it is what it is. If it doesn't and it just says 14% of the builders costs then you could definitely argue that it should be calculated on the builders net cost (ie before VAT).
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