A Smarter Way to Manage VAT on Professional and Construction Costs

VAT and Procurement

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For high-value residential and commercial projects, VAT on professional fees — such as design, architecture, and project management — can represent a significant cost.

A carefully structured procurement arrangement, where a client sets up a dedicated construction company to deliver their own project, can legitimately reduce or remove VAT on these costs.

At Landmark PT, we can help clients establish and manage these arrangements safely and efficiently — ensuring the structure is properly set up, VAT-compliant, and commercially effective.

How the VAT Efficient Procurement Works

As an example a client can choose a design and build arrangement whereby the contractor procures and carries out the works.

This company:

  • Engages the design and professional team (architects, engineers, surveyors, interior designers).

  • Procures and manages the building works.

  • Supplies the completed project to its customer.

When implemented correctly, this approach can allow the VAT reliefs that apply to the construction works to extend across the entire project, including professional and design services that would otherwise be charged at 20%.

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Our Role

We provide end-to-end management of the VAT and procurement aspects of the structure, ensuring that contracts, invoicing, and documentation align with HMRC requirements and construction practice.

Our support includes:

  • Assessing the suitability and VAT benefits of different procurement arrangements for your project.

  • Guiding the setup and administration of the delivery company, including VAT registration and compliance requirements.

  • Advising on contract structure and procurement documentation to ensure the arrangement functions correctly.

  • Managing the VAT position throughout the project so that the correct treatment is maintained as works progress.

We coordinate all necessary financial and compliance functions through our own team and specialist sub-consultants, giving you a single point of contact and a seamless, integrated service.

When It’s Appropriate

Design and build company structures are particularly effective for:

  • High-value residential projects where professional and design fees are substantial.

  • Owner-occupied developments where the client directly controls design and construction.

  • Projects qualifying for zero- or reduced-rated VAT, allowing the relief to apply across the full supply.

However, these arrangements must be carefully planned and managed to remain compliant. That’s where our blend of construction understanding and VAT expertise ensures confidence and control.

Why Choose Landmark PT

  • Hands-on expertise — we understand how construction projects are delivered, not just how the rules read.

  • Proven success — hundreds of VAT-efficient building projects guided each year.

  • Attention to detail — we ensure invoices, certificates, and claims stand up to HMRC scrutiny.

  • Personal service — we support you throughout your build, from the first plan to the final claim.

Talk to Us Before You Start Building

If you’re planning a new build, conversion, or refurbishment project where professional fees form a significant cost, talk to Landmark PT about how a design and build company structure could deliver substantial VAT savings.

We’ll assess the opportunity, design the structure, and provide the expertise needed to ensure it operates compliantly, efficiently, and profitably.

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