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Zero Rated Vat Exemption Number

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#1 Barney12


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Posted 16 March 2016 - 02:41 PM

I've got a labour only contractor working for me at the moment for a small job in relation to groundworks that is instant he must charge VAT unless I can provide him with a "exemption number". I've explained to him no such "exemption number" exists for self builders, shown him the guidance on the IR website and also given him a self produced certificate (thank you Jeremy for the idea!). But, he's still not convinced. I know I could claim it back but its £200+ out of my cash flow that I'd rather keep in my bank.

Before I have a sense of humour failure (its been a long week already!) am I missing something? He's so instant that he gets one I've started to doubt myself!!


#2 jsharris


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Posted 16 March 2016 - 04:11 PM

You can't claim it back, AFAIK, unless HMRC are feeling very generous and make a special exception. Once paid, it's paid, so the chap has to be persuaded not to charge VAT on the work to you, I'm afraid.

All the chap needs is evidence that it is a new build, with planning permission, that falls within the rules in VAT Notice 708: https://www.gov.uk/g...nd-construction

Edited by jsharris, 16 March 2016 - 04:11 PM.

#3 temp


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Posted 16 March 2016 - 05:23 PM


You cannot use the self build reclaim scheme to claim back VAT that has been incorrectly charged.

Perhaps call the VAT help line together/on speaker phone?...


#4 Barney12


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Posted 16 March 2016 - 06:02 PM

Thanks guys.

Funnily enough today I noticed something interesting..........

the invoice he's presented me that started this whole debate off doesn't have a VAT number. It does include a line for VAT at 20% though. He's a sole trader, not Ltd (well as far as the paperwork states).

I'm beginning to wonder weather the actual issue is that adding the 20% is for his pocket not the revenue! It would explain why he's so apposed to removing it!

Anyway I've told him I'm paying nothing more than the pre-vat total and he can "walk" if he doesn't like it.

Crikey this bloody business of self building is hard/stressful enough without idiots like this :-/

#5 declan52


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Posted 16 March 2016 - 06:10 PM

Wait till you have all the salesmen call in trying to peddle there wares. They will make your contractor look like Einstein.