VAT help required

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Hi Everyone,

Can someone help regarding VAT on builders cleans etc.

We are a small cleaning company,we work on new build cleans and have been recently told we dont pay VAT on construction sites due to them being zero rated.
We rang hmrc to confirm this,only to be told 2 different things.
1. builders cleans / recleans zero vat until completion certificate issued?
2. builders cleans / recleans/legal cleans zero rated until legal completion?

So we are confused as to what is zero rated or not
any advice is most appreciated

thankyou

 

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Good old HMRC Helpline!.

Go visit this link :-

http://customs.hmrc.gov.uk/channels...heets&id=HMCE_CL_000513&propertyType=document

Para 3.3.4 covers builders cleans.

In simple terms, if the clean relates to a new build dwelling then your services can be zero rated. If they are not related to a new dwelling then they are standard rated.

The confusion over completion certificates is that HMRC like to draw a line on when construction has ceased as they want to stop someone having an extension or conservatory done 3 months after 'moving in' and trying to get those works zero rated too (by the way, you cannot, such works would need to be done before 'completion').

So the completion certificate assists everyone as to when the property was 'completed' thus any cleans done long after the event are likely to be seen as NOT related to the construction of a dwelling and therefore standard rated.

It may be that a builders clean is done just after completion (ie, withi a week) and this will still be okay - you just need to be able to show that the clean isn't so long after completion that it is not a builders clean anymore. Para 3.3.6 covers that for you.

 

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thankyou for your reply,

confusion over