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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4351
Experience:  FCCA FCMA CGMA ACIS
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As an ex builder, my neighbour has asked me to project

Customer Question

As an ex builder, my neighbour has asked me to project manage his home extension, with a contract valued around £155,000, as he lives in Kuwait. Vat will have to be added to this.
I presently have another IT company which is VAT registered and I am just wondering what is the best way to offer my help as he would like to pay me for my time?
Vic
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello Vic, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

I would be inclined to put the pay for this work through your company, assuming that the Articles permit such activity. Most companies there days have very wide span of permitted activities. It would also place a buffer between you and your activities should something drastic go amiss. To pay for the actual works I would suggest that you open a separate bank account, he fund it on an imprest basis and you use it to meet the bills.

This work does not attract VAT, but the builder will have to be advised of this fact so he does not put the tax on your neighbour's bills.

I do hope that I have been able to show you a secure and economical way forward in this matter.