VAT on Construction work...

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Does anyone know where I could find details of VAT and construction work? I have a new client whos company does "ground work" and is VAT registered. he says he can claim VAT back for fuel etc, but does not have to charge VAT on services. I just wondered if there was a detailed article about this - cant seem to find anything on HMRC website!

Any ideas please? :?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT on Construction work...


    New construction might be zero-rated if certain conditions are met -

    Check HMRC Notice 708 'Building & Construction'.

    It's available on their website.

    Generally, new homes are zero-rated - but much care is needed over the definition of a new home.

    Helen
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT on Construction work...

    Thanks Helen,
    Have found it! What in minefield though!

    Thanks again :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT on Construction work...

    Thanks Helen,
    Have found it! What a minefield though!

    Thanks again :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT on Construction work...


    Let me know if I can help further.

    One tip is that you should obtain a copy of planning permissions that relate to non-standard contracts.

    You might be building a house, but the planning permission might have restrictions on its disposal.

    That would compromise the zero-rating of any work.

    Some work might attract 5% - some barn conversions for example. But if the barn is in a yard and can't be disposed of separately from the original farmhouse, it attracts 17.5%

    Although I view this as a company that might employ groundworkers, I am often asked for copies of the planning permissions by those we employ - it is good practice.

    Welcome to the wonderful world of construction!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT on Construction work...

    Ok, thanks for that.

    He threw a VAT return at me(not literally!) and an envelope of diesel receipts and said they only claim back for fuel and no VAT on sales!

    His accountant did it before and I cant seem to get through to him that I need more info than that! Do we have to account for all payments received on VAT return?(even if no VAT charged)

    Sorry to sound daft, but this is a new one for me. Usually ofset purchases against sales!

    Any advice greatly appreciated
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT on Construction work...


    All relevant transactions should be included.

    Take care over the treatment of the outputs.

    I have had contracts that were zero-rated for the main contractor (me), but not for the sub-contractors.

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