VAT on PV for New Build

[Earthstore]

Well somebody is wrong here, so now we have even more rules that have caused complete confusion.

My opinion,for what it is worth is, if you are charged vat then you can claim it back.
Not every company will do work/supply goods to you at 0% vat, so you must be able to claim it back...

 

[BruceB]

..... Not every company will do work/supply goods to you at 0% vat, so you must be able to claim it back...

There is no 'must' about it unless you can provide a reference. HMRC are very clear - if you are charged VAT incorrectly you have to get a correct VAT invoice issued by your supplier and get the correct VAT charged by them. You cannot opt to get the VAT back from HMRC if you were charged it incorrectly. The quote I gave earlier was from the HMRC site, which although is not the law is normally close enough to it.

I had this issue a few times with suppliers when I was renovating a listed Old Mill as a personal customer. The zero percent in that case was for alterations to a listed building rather than a new build but the principle is the same. The bosses of a joinery company, specialist lime plastering company and local plastering company were very wary when I said please bill me at 0% VAT, but at least their accounts depts/bookkeepers could read so when pointed at particular paragraphs in Notice 708 they understood and complied.

Regards
Bruce

 

[Lastminuteandy]

I did try to quote the HMRC rules on VAT for new-builds clearly earlier. There is NO leeway at all on these.....
1. Services must be charged as zero
2. Services with materials included must be charged as zero.
3. Materials only must be charged at the normal VAT rate.....so 5% for PV.
4. The home owner can claim back VAT on ALLOWABLE materials only. PV is only allowable if part of a heating system required for the house.

I have asked HMRC to clarify if VAT on PV installed on a new-build for the purpose of providing power is also claimable. I am waiting for the reply.

Andy

 

[Cider]

What about the FIT rate?
If its fitted before house passed by BCO it will be new build tarrif and i thought no VAT but even if im wrong the best thing is to install (or bill) after BCO sigs off then its retrofit, pay the 5 % but get higher FIT.
Thats what I did last Dec.

 

[moggy1968]

your immersion is part of the heating system and runs on electric. Would that count as being part of the heating system.
HMRC aren't always right. There was a massive battle between opticians and HMRC a few years ago about VAT on professional fees. HMRC eventually lost, after several appeals (sound familiar!). My folks, who have an opticians business, got over 30 grand back.

 

[Cider]

I remember the vat man trying to do mcvities or who ever makes jaffa cakes.
They said that jaffa cakes are a biscuit to which vat apply's but mcvities said they were cakes to which vat does not apply.

It went to court and hmrc lost as it was decided that biscuits go soft when stale and cake goes hard.

 

[Cider]

quite what that has to do with pv i dont know :yawn:

 

[TedM]

New build and retrofit FiT rates are the same since April 1st. 21p, 16.8p or 9p for upto 4kW.

 

[moggy1968]

quite what that has to do with pv i dont know :yawn:

'cos I like a biscuit when I'm fitting PV. Sometimes I even have a jaffa cake!!
:rockon:

 

[Lastminuteandy]

'cos I like a biscuit when I'm fitting PV. Sometimes I even have a jaffa cake!!

If you charge the customer for your biscuit or jaffa cake as part of the job then will have to declare that as tax benfefit on your tax return and pay tax on it as a benefit!!!!!

 

[Gavin A]

3. Materials only must be charged at the normal VAT rate.....so 5% for PV.

materials only for PV is 20%.

 

[Cider]

New build and retrofit FiT rates are the same since April 1st. 21p, 16.8p or 9p for upto 4kW.

Goes to show how much im out of the picture with installs:dead:

 

[Glen Powell]

3. Materials only must be charged at the normal VAT rate.....so 5% for PV.

Is a typo any products regardless of vat band not included in a service (the supplier does not install it) is 20% at the moment, this does not include jaffa cakes at tea time, but materials going into a building as a new build, listed building or barn conversion.

this is as Gavin says earlier, as most have said earlier, and as I said very close to the begining of the topic. ooppps, I am sure we are all clear now.

 

[jerriais]

Just wondering if HMRC ever got back to you about that Andy? I've got a similar customer today doing a new build and asking about 0% VAT

 

[Worcester]

HM Revenue & Customs: Building trades: VAT when constructing new houses and flats
and
HM Revenue & Customs: Building and construction work and VAT