Construction VAT Treatment
Discussion
I’m struggling to come up with a definitive answer to the VAT treatment in this scenario, and I was hoping that amongst the many experts on here, someone would know the answer.
A housing developer, constructing new build homes, has asked a subcontractor to paint the hoarding on a site. Normally, as the subcontractor is painting the new homes, his work is zero rated for VAT. However, as this work is not directly on the houses, should it be charged at the standard rate of VAT.
I’m inclined to believe that it should have 20% VAT, but I don’t know if it would fall under one of HMRC's lovely blanket rules where because the whole site is new build, all labour should be zero rated.
You'd think after 10+ years working in construction accounts, I'd know the answer straight away.
TIA
A housing developer, constructing new build homes, has asked a subcontractor to paint the hoarding on a site. Normally, as the subcontractor is painting the new homes, his work is zero rated for VAT. However, as this work is not directly on the houses, should it be charged at the standard rate of VAT.
I’m inclined to believe that it should have 20% VAT, but I don’t know if it would fall under one of HMRC's lovely blanket rules where because the whole site is new build, all labour should be zero rated.
You'd think after 10+ years working in construction accounts, I'd know the answer straight away.
TIA
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