I went to the Build It Live exhibition and have spoken to their "Ask the experts", I thought the new build is VAT free on materials only and yet they says it's VAT free on everything such as labour and paperwork, is this true?
Build It Live exhibition experts
- Thread starter masona
- Start date
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It depends on the kind of service
If you buy bricks, you pay 20% VAT on the bricks and you can reclaim it
If you then pay a brickie to lay them, you should pay 0% VAT on his bill if he is VAT registered
If you engage your VAT registered brickie to buy bricks for you and lay them then you pay 0% VAT on his services and the bricks
If you engage an architect to design your wall you pay 20% on his services regardless and you cannot claim it back.
Generally "clean" work is non reclaimable (technically only "services in the course of construction" are reclaimable) because people who carry out clean work are not "incorporating building materials into the structure". Materials that can be removed without major damage to the structure of the building, or are not typical of that kind of building are not reclaimable. You are allowed to reclaim VAT on delivery charges applied to reclaimable items
If you are converting a qualifying nonresidential building to residential then you generally pay 5% wherever a new build would be 0% and you can claim it back
https://www.gov.uk/government/publi...supplies-of-building-materials-by-contractors
If you buy bricks, you pay 20% VAT on the bricks and you can reclaim it
If you then pay a brickie to lay them, you should pay 0% VAT on his bill if he is VAT registered
If you engage your VAT registered brickie to buy bricks for you and lay them then you pay 0% VAT on his services and the bricks
If you engage an architect to design your wall you pay 20% on his services regardless and you cannot claim it back.
Generally "clean" work is non reclaimable (technically only "services in the course of construction" are reclaimable) because people who carry out clean work are not "incorporating building materials into the structure". Materials that can be removed without major damage to the structure of the building, or are not typical of that kind of building are not reclaimable. You are allowed to reclaim VAT on delivery charges applied to reclaimable items
If you are converting a qualifying nonresidential building to residential then you generally pay 5% wherever a new build would be 0% and you can claim it back
https://www.gov.uk/government/publi...supplies-of-building-materials-by-contractors
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