VAT on driveway construction?

[simplepimple]

My contractor is just about to start my driveway and that of the host house who's garden my house is now in. (paying for their driveway is included in my planning approval) 

 

Am I correct in thinking I don't pay VAT on his quote - I've looked at the reclaim info pack (haven't been able to get hold of them by phone) and it says they won't refund tax on things that you shouldn't have paid tax on in the first place. 

[recoveringbuilder]

Yes you shouldn’t pay vat .

[simplepimple]

Thanks recoveringbuilder - and really then he would probably be aware of that. ?

[newhome]

Unless your builder has worked on several self builds he might not be aware of that. Adding a drive to an existing dwelling will attract standard VAT. In your case zero rating will apply. If he’s not sure direct him to VAT Notice 708 (see link) as per the screenshot posted. He may want proof from you in which case give him a copy of the planning permission. Builders can be hit with penalties if they don’t charge VAT at the correct rate so he may be cautious. 
 

 

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

 

 

[simplepimple]

Thank you newhome for your very useful advice - he is saying he needs a Zero VAT number in order to amend my invoice. 

[Temp]

Never heard of a "zero vat number".

 

Offer him a certificate which is essentially a letter confirming that the work should be zero rated as it relates to the construction of a new dwelling at... and quoting your planning reference number, site address, your name and contact details. Attach copy of your planning grant.

 

Your drive should definitly be zero rated. However its possible he may argue the neighbours driveway should be standard rated. If and only if he raises this issue point out that VAT Notice 708 has a section that covers "3.3.4 Work closely connected to the construction of the building" and argue that it comes under "(a) allows the construction of the building to take place,..". I would not mention it unless he does because its open to interpretation. The fact that it on your planning approval helps argue the point.

 

 

 

 

[simplepimple]

Thank you everyone who has taken the time to comment - I really appreciate your help and it all played a large part in me being able to say the correct things to him. I've finally got an invoice without the vat added - I sent him a copy of my planning approval. 

 

So amazing to have BuildHub with it's amazing forumites offering great advice to us not-knowers-but-we're-learning. ?