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Old 11th July 2011
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Question Zero rated vat

Can anyone confirm what is vatable and what isn't

I remember getting a bollokin some years ago, off the revenue for not charging VAT on a new build house!

I said its new build so Zero rated!

They said:
If its labour only, NO VAT
Hire only, VAT at standard rate

But they said, if its labour and plant hire together, then the standard rate of VAT will apply on everything!


Now i've looked on the web and they say, you can zero rate the labour element????

and to top that, there are differing rates for conversions, green energy, empty properties, etc etc

totally confused

PC's only pay what they feel on self billing, and when I point out to them the VAT is due, they just ignore me
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Old 11th July 2011
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Quote:
Originally Posted by HatterScaff View Post
Can anyone confirm what is vatable and what isn't

I remember getting a bollokin some years ago, off the revenue for not charging VAT on a new build house!

I said its new build so Zero rated!

They said:
If its labour only, NO VAT
Hire only, VAT at standard rate

But they said, if its labour and plant hire together, then the standard rate of VAT will apply on everything!


Now i've looked on the web and they say, you can zero rate the labour element????

and to top that, there are differing rates for conversions, green energy, empty properties, etc etc

totally confused

PC's only pay what they feel on self billing, and when I point out to them the VAT is due, they just ignore me
We've always charged new build housing at 0% for VAT purposes.
Whenever we've been asked to charge VAT on the materials, we've said we had included the material for free on the job.

You're right though, there are a lot of different rates for different kinds of jobs.

If you are working on a residential property that has been empty for over 2 years, the VAT is charged at 5%. The owner does have to get proof from the local council that the property has not been lived in though.
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Old 11th July 2011
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Thanks for that Dass

Just opened another can of worms there, if you include materials for free or give discount, I'm led to believe that you are still liable for the nett vat element, (they want their slice of the cake still!)
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Old 11th July 2011
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We always charge VAT on everything unless they have charity status .
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Old 11th July 2011
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Phill,
At the risk of sounding like a tight@rse, we charge VAT on charity work. We've never had anyone tell us any different

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Old 11th July 2011
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Unless they provide you with a charity status exemption then we charge the VAT as well, because the VAT man will want his 20% whether you charge them or not.
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Old 11th July 2011
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It's always handy with new builds as they are zero rated VAT. This way genuine company's are able to compete with those that would do them for ££££..
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Old 12th July 2011
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You shuld always charge full vat? if the customer wants to argue the toss tell him to clame back the vat himself. Yes you can split the materials and labour however if that is not the way the quote has been accepted (signed contract) then vat is payable on all. If you still get problems with customers not paying contact the tax office and report the customer
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Old 12th July 2011
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Got to be honest and say we charge all new builds at 100% VAT even although we know you can split it and only charge it on the material. It just makes it simpler and reduces the chances of a major f-up.

You can also change the way you pay the VAT so you only pay for cash brought in instead of invoice's written.
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Old 12th July 2011
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Sound advice we do the same as have had the vat pull us in past
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