10
Dec
FMB renews call for VAT cut
The Federation of Master Builders (FMB) has repeated its demand
that the level of VAT on home renovation and improvement work
should be trimmed to five per cent.
It follows the publication of a report detailing the scale of
Britain's informal economy by the House of Commons public account
committee.
FMB director of external affairs Brian Berry suggested that
informal traders are undercutting legitimate operators because of
the price gap the VAT bill creates.
"Reducing the rate of VAT on domestic building work to five per
cent will significantly reduce the commercial advantage of the VAT
evading trader," he said.
Such a move could help first-time buyers, who would be able to buy
a home and then add improvements to it at a lower cost.
The FMB is part of the 'Cut the VAT' coalition, which is aiming to
make building costs cheaper.
Last week the Royal Institute of British Architects became the
latest organisation to join the body.
