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).