Building an extension under disability vat exemption

[jim88]

Hey all, i priced an extension a few month back. Customer has just accepted few weeks back and notified me that hes exempt from paying the VAT on the quote.
Claiming disability etc, he is disabled so im just trying to understand how it works.
Has anyone had any experience with this?
Struggling to find anything clear online
Would the full amount of VAT be exempt with it being an extension or is it certain elements like a wetroom etc.
Thanks in advance for any replies

 

[SFK]

Detailed here.
But more for ramps, no detail of an entire extension.
https://www.gov.uk/financial-help-disabled/vat-relief


This is the form that has to be completed.
https://www.gov.uk/government/publi...-eligibility-declaration-by-a-disabled-person

Sorry but I do not know who claims for vat to be refunded or zeroed. might be done on your invoice system or buyer might have to claim back.

My reading is your risk! And also that whole extension is not covered. Only specific items detailed as follows.

Building work that can be VAT-free
This section has information on the building work that can be VAT-free in your home, for example:

• ramps, doorways and passages
• bathrooms, washrooms and lavatories
• installation or repair and maintenance of lifts
• preparation or restoration work

‘Your home’ means your private residence, that’s the place where you normally live. This can be the home of a close relative if you normally live there. ‘Your home’ includes your garden and any outbuildings.

 

[SFK]

I read a bit more, the risk is on you..

And does not cover entire extension.

As the the supplier, you’re responsible for making sure that your customer meets all the conditions for zero rating.

This declaration does not automatically justify zero rating your supply to a disabled person. You must make sure that the goods or services you’re supplying qualify.

Check Reliefs from VAT for disabled and older people (Notice 701/7) before applying VAT relief to your supplies.

 

[jim88]

thank you for the reply.

ive just been reading a few documents, still very much a grey area. It seems only certain aspects are exempt.
Im trying to find out if the shell if exempt, i.e footings, structure, roof etc
The customer definitely thinks all the VAT on the total quoted price is exempt. Either way i need to do more research before i meet the client

 

[mrrusty]

I am by no means an expert at this, but fairly used to reading between the lines of doublespeak, particularly government doublespeak.

My opinion having read some of the info, and it is just an opinion, is that no way is the whole extension VAT exempt, unless the extension is 100% a space solely for specifically disabled use, when it might be arguable - extension for disabled bathroom only perhaps. Certainly equipment and fittings specifically for disabled use appear to be vat exempt including their installation.

Look at this re beds

A bed will not be eligible for relief unless it clearly stands out as being something specialised for the use of people with disabilities such as being similar to a hospital bed. As well as being electrically or mechanically adjustable, it should have specific design features that distinguish it from a standard bed, such as being:

• fitted with cot sides
• height adjustable

A mattress is only eligible for this relief if it’s either:

• supplied as part of a single supply of a qualifying bed
• designed solely for use by a disabled person,

Apply the same philosophy to the extension - how is it designed 100% for disabled use and how does it differ from an extension for everybody - IMHO no difference, no exemption.

From what I can see, I would get the exemption certificate completed by the customer, apply the exemption for 100% specific items/fittings and charge VAT on the rest. It's your risk, and methinks either way exempt or not there is a significant additional time hassle factor which when costed in probably offsets a big chunk of any saving.

 

[ktuludays]

Bit sly of the customer to tell you that after accepting your quote. If that information was upfront it may have saved you time working out a quote if you'd decided it was too much hassle for you.

 

[sxturbo]

Another government subsidy thats as clear as mud....

To make the system simple I think the customer should be the one that has to claim the vat back....

I had this situation a few years ago when a disabled ordered 2x special golf cart batteries, then when came to pick up said it was for his wife's mobility scooter and he shouldn't be charged the vat etc etc. There was no provision in the company for such a measure and it seemed quite a long winded process. A small argument ensued as the customer started shouting and hollering, so I took the decision not to sell him the batteries, was far to much hassle.

Sometimes they do have a chip on their shoulder about such things, but I don't think they understand just how difficult it is to work the system to claim the relief.

 

[ktuludays]

Another government subsidy thats as clear as mud....

To make the system simple I think the customer should be the one that has to claim the vat back....

Agreed, the self employed have enough admin to deal with to start with.