For many years my client has employed a small non VAT registered builder to maintain commercial property, which his VAT registered company owns. If the material content of a particular item was high he has asked to him to get an invoice in the companies name and paid separately and reclaimed VAT. There have never been any queries during VAT inspections
However he is now building an extension to the building and wishes to use the same builder. There will be large quanities of bills and he will need to give him a cash advance by cheque to enable him to purchase. Does he need to have a written agency agreement or a special contract of works and should he account for this in any particular way to enable him to reclaim VAT
