The old labour/hire question about VAT

[Dandaps]

Reeto guys just done a job on a new build and have been invoicing 0% vat.
Only to be told yesterday by my accountant that I should be charging VAT because we are a service provider unlike brickies etc who just provide labour.
He tells me I should invoice them a VAT only invoice for the works done & Uses one example from his past experiance that a contractor went into administration and when tax man looks into it chases a scaffold company up for VAT they never charged for.

So I have spoken to client who gets his accountant on to the case and then tells me I should only charge for the labour % of the invoice.
Just to make things more complicated.
Any advice guys would be much apprieciated

 

[dangeruss]

No vat on new build mate, no vat on some listed building work either.

---------- Post added at 04:42 PM ---------- Previous post was at 04:33 PM ----------

No vat on new build mate, no vat on some listed building work either.

Remember its no vat on new build houses, not construction as a whole. I thinks that right

 

[aom]

There is VAT, your old accountant is right. We just charge all as 100% Vat and let them chase for a rebate but the correct way to do it is split it around two thirds as material and one third labour.

---------- Post added at 05:05 PM ---------- Previous post was at 04:43 PM ----------

or is it the other way round, the mrs does the invoicing now so can't remember but what I do know is don't mess with the vat man and cover yourself. Even if they are non vatable like listed I think you still need to have a certificate from the vat man to prove it, don't assume anything, many a god man and business floundered with that one.

 

[philliosmaximus]

I all ways charge 100% VAT unless they can give me a copy of an exemption that i can check with the VAT office , We have had it before with registered charity's that claim to be VAT exempt but cant give us any paper work to confirm they are , dont mess with the VAT man he will jump all over you

 

[Dandaps]

Think I am gonna just bill him for the VAT cheers guys, let him claim it back.

 

[Binthere]

On contract scaffolding you standard rate the whole supply irrespective of the site rating. The main contractor will claim back any tax paid from HMRC. The extract below was provided some months back by 'Hatterscaff' which brings us up to date. I have worked on large firms who have fallen foul of HMRC and paid back ten's of thousands in tax and fines.


HMRC Notice 708 - Buildings and construction
November 2011
Page 52 of 120
• means of providing drainage or security; or
• provision of means of waste disposal.
All other services are standard-rated. For example, you must standard-rate:
• the installation of goods that are not building materials, such as
carpets or fitted bedroom furniture;
• the erection and dismantling of scaffolding;
• the hire of goods;
• landscaping; and
• the provision of professional services, such as those provided by
architects, surveyors, consultants and supervisors.

 

[frederik]

If your vat reg,you must charge it.
I think your right on new properties not paying vat dandaps,tho I believe the company still has to be vat regd to claim it back.

 

[poisebrook]

it starts with your terms and conditions if you state that vat is charged then it is up to the contractor to chase up the taxman for a rebate. Again do not split labour and materials leave that to the tax man always charge the vat at 100%
exeptions that can be considered at tender stage are new build charity work there are a few more but not woke up yet.