That sounds very sensible.Hi John. I will be talking to the VAT man later this week to see if there is a legal way I can recover some of the VAT now that I know the full extent of the very necessary work needed on the cottage.
If the sole trader were someone other than yourself, then my understanding is that what you say would certainly be true - but I don't know whether they have built in any rules to prevent you employing youself in the fashion you describe.If I ( owner of listed building ) had employed myself ( VAT registered sole trader ) to renovate the building then I ( sole trader ) could apply zero rating to some of the work and apparently reclaim the VAT that I ( sole trader ) had to pay on some of the materials.
Again, a matter of what the system will allow you to get away with - but if you charged yourself little or nothing for labour, the tax would obviously also be little or nothing.But if I employ myself in oprder to reduce VAT liability then I am probably going to have to pay tax on the money I ( sole trader ) charge myself ( owner ) for labour as it is earned income.
Kind Regards, John.