ijust to give you some back ground , i was asked to price as the builder has given his price for his spark (who is VAT registred ) , so ontop of the other spaks price there is the builders cut and VAT , and as i am not VAT reg she wanted me to quote to her directly .
Just to point out, if this is a new build, then there is NO VAT
So the builder should not be charging the customer VAT on any of his labour or materials. If you are in direct contact with the owner, point this out to them.
This puts a non VAT registered sparky at a disadvantage, as we have no way of buying materials without VAT, and no mechanism to claim the VAT back, so we have to pass on the VAT on materials to the customer, which inflates our price compared to a VAT registered sparky.
In this situation, I have a good relationship with a VAT registered builder, so if I'm wiring a house that he is building, I give him the shopping list to buy the parts and claim the VAT back, and I just charge him for the labour.
I have even done the same when I work directly for the house owner, give him the list of parts to buy, and at the end of the build he can claim the VAT back, and I just charge him labour.
If the home owner tries to claim back the VAT that the builder has charged him, he won't get it, he will instead be told to claim it back from the builder who should not have charged it in the first place. The VAT reclaim mechanism for self builders is only to cover the VAT on materials they have directly purchased. (and how do I know this....)