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Post Info TOPIC: Vat question, whether to charge VAT?


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Vat question, whether to charge VAT?
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My client who is an agricultural contractor who cuts hedges and puts fences up has recently erected a new fence for a client who has built a new house.  The owner of the property says we must zero rate the cost of the fence as it is a new build.  I am aware of the new build situation but was not aware that this covered zero rating the cost of a boundary fence.  I would be inclined to charge VAT.  Anyone any advice?



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Roz



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Hi

If you client is VAT registered then he should make a zero rated supply.

This an extract from HMRC guidance.

Work that allows the building to be used

 

You can zero-rate all of the following work:

 

  • providing water or power such as gas or electricity - including making connections to the nearest existing supply
  • creating access such as paths, driveways, patios, roads and parking areas
  • making security features such as walls and gates
  • basic soft landscaping - this means putting down top soil and laying grass - but only if this is required by the terms of the planning consent

The relevant link is below

http://www.hmrc.gov.uk/vat/sectors/builders/new-houses.htm#5

HTH

Bill



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Many thanks Wella, I have followed the link and now see that this job follows the correct criteria and shall zero rate the invoice. We must be a sad lot working on accounts on a lovely day like today???

Roz

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Roz



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Hi Roz

Know what you mean about working today but fortunately (not for the visitors though) it is a typical Cornish summers day, dull, overcast and mizzly. All that's missing is horizontal rain.

Bill



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Just for a change in North Notts we have glorious sunshine and 22 degrees and I am still in the office.

Roz

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Roz



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Gets on the A50 driving into the sunshine



-- Edited by Don Tax on Sunday 24th of July 2011 03:56:35 PM

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Hi Roz,

Ditto from very sunny South Staffordshire.

I'm actually having more of a sort out than working per se. (I'm one of those who never throws anything away, just rearranges it a bit).

Both the fan and air cooler are working overtime but it's making absolutely no impression on the heat at all... Maybe, if I can't stand this I should rethink the idea of eventually retiring to Thailand!

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.

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