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Thread: Zero rated vat

  1. #31
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    We just explained it to yo mate ,
    New build is zero rated but only on the labour element

    ---------- Post added at 07:19 PM ---------- Previous post was at 07:19 PM ----------

    We just explained it to yo mate ,
    New build is zero rated but only on the labour element
    #scafflivesmatter

  2. #32
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    its such a feckin grey area, just charge it all and make them claim it back through their own system


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  3. #33
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    Quote Originally Posted by mart62 View Post
    Any of you guys been asked by hmrc about proving why you didn't charge vat. I know of two companies including myself now.

    Still ongoing letters going back and forth for me.

    Martin
    Have you not resolved this issue with HMRC yet Martin?

  4. #34
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    Please take care. HMRC are approaching a number of scaffolding contractors and arguing that the supplies made to housebuilders cannot be wholly zero-rated.
    They argue that some part of the charge to a housebuilder must be for the hire of the scaffold itself which must be standard-rated. It is not safe to completely zero-rate a housebuilding contract. The invoice should be apportioned between hire and erection/drop and each element separately charged to a different rate of VAT.
    Alternatively the whole contract should bear standard- rate VAT which the housebuilder can recover in full.


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  5. The Following 2 Users Say Thank You to HatterScaff For This Useful Post:

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  6. #35
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    Quote Originally Posted by Binthere View Post
    Have you not resolved this issue with HMRC yet Martin?
    hi mate...sorry for the delay in answering. yes all resolved now. i had to get in £18k of vat from my customers. luckily most of them paid apart from the self-builders. luckily i held my ground and only put 5% materials/hire down for self builders so not so bad. 30% materials/hire for normal contractors.

    I know of a company who has gone into administration because of this and just going to start up again.
    Last edited by mart62; 15th May 2017 at 06:37 AM.

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  8. #36
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    Mart62, Thank you for the update as this thread could serve as a reference point for other small scaffolding companies that fall over the same hurdle.

    As I have said many times before, VAT should always be claimed and paid on contract scaffolding. The builder will be claiming it back from HMRC - the scaffold contractor is expected to pay the tax irrespective of collection.
    Over the next few years the UK exchequer will be under pressure to recover as much tax as it can, this will be one source it will look closely at. Be careful to collect the proper amounts as I think this will become more common.
    Glad to hear you survived the ordeal, always think back on it as a giant learning curve.

  9. #37
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    yes indeed. for any small companies starting out please be careful with vat and your taxes. i have had vat and hmrc on my back for the last 4 years and its not nice. its very easy to make genuine mistakes in this game.

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