Sounds like a good scheme. I've never come across it though, so I'm sorry I can't help.
This VAT business............ one of the (legal) ways of getting around it is to open your own account at a local builders' merchants. They'll be only too glad to have your business, and you'll get trade prices etc.
Then, hire local tradesmen who are NOT VAT registered. Get a "labour only" quote from them ........... you provide the materials.
It would need co-operation and compromise from both sides to make it work, but it's often done.