VAT and public utilities

[Conor]

Can works by utility companies be zero rated or recliamed?

 

Was about to pay NIE for connection works at our site and it has VAT on. But we've not *officially* started the new build works. Wondering if it's worth holding off until we get full PP of the VAT can be reclaimed for the connection modification.

[newhome]

You cannot reclaim, the invoice must be zero rated and can be if you have PP in place for a new build. 

[nod]

I rang the gas asked to zero rate 

Told them electric had agreed they said ok asked electric they said no told the gas had rang me back and said ok

eater followed suit 

[Temp]

Our water main diversion was zero rated.  

[Temp]

You dont have to officially start work for something to be zero rated. The guide VAT 708 just says the work must be "closely connected" with the construction of a new dwelling.

 

See section 3.3.6

https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction

 

It says it can be zero rated except in the case where.

 it is not clear that the construction of a building that qualifies for the zero rate will take place shortly afterwards

 

I think outline PP or full PP with some conditions not yet met might be enough.

 

I would tell them its for a new dwelling that should be zero rated and ask for a new quote showing zero vat, see what they say.

 

[Temp]

Make sure you get your CIL exemption paperwork done before starting any work on site.

[Conor]

Thanks everybody. Pretty much just saved me £400.

[dpmiller]

Weird. there was never any mention of VAT on any of our NIE quotes.

[Conor]

I think it's because we are categorised as an alteration rather than new connection. I'll phone them tomorrow.