VAT on moving electricity lines further away from build site

[Barn Becs]

We have planning to convert our barn into a residential dwelling, but there are some high voltage power lines running near the existing building.  We could carry out the conversion safely without getting too close to them, but we may want to extend the house in the future, in which case they would then be in the way so we think it best to have them moved right out of the way.

 

The energy supplier has quoted with reduced VAT as it's a self build, but we want to make sure that is definitely correct as it isn't actually integral to the build that they are moved and we want to make certain there won't be any come back on us from HMRC.  

 

This is all new to me I am afraid so sorry for the ignorance.  I have tried ringing the VAT helpline several times to ask, but haven't been able to get through.

 

It would also be handy to know generally if any of our suppliers do make a mistake and charge us reduced rate on something they shouldn't, is it them that is liable with the VAT man or us? 

 

[TonyT]

https://www.hse.gov.uk/pubns/gs6.pdf
 

Some safe working  guidance for working near to HV, can’t help on vat?

Edited February 4, 2021 by TonyT

[Barn Becs]

Just so you know these are underground cables I'm referring to, sorry should have mentioned that 

 

[TonyT]

Why are the cables on your land?

 

[newhome]

53 minutes ago, Barn Becs said:

The energy supplier has quoted with reduced VAT as it's a self build, but we want to make sure that is definitely correct as it isn't actually integral to the build that they are moved and we want to make certain there won't be any come back on us from HMRC.  

It comes under work closely connected to the construction of the building in VAT Notice 708 so can be reduced VAT @ 5% for a conversion. I would just say that you moved them for build safety if anyone queries it. 
 

https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section3

 

 

 

 

57 minutes ago, Barn Becs said:

It would also be handy to know generally if any of our suppliers do make a mistake and charge us reduced rate on something they shouldn't, is it them that is liable with the VAT man or us? 

HMRC will ask your supplier to correct the VAT position not you, and they in turn may ask you for the additional VAT, but they are in a weak position once the job has completed. Worst case you will be prevented from reclaiming the 5% assuming that your project is eligible for the VAT reclaim scheme. 

[Temp]

+1

 

We had to move a water main and it was zero rated to us because it was a new house. 

 

In your case they should charge the 5% rate and you should reclaim it at the end.

 

[Temp]

3 hours ago, Barn Becs said:

It would also be handy to know generally if any of our suppliers do make a mistake and charge us reduced rate on something they shouldn't, is it them that is liable with the VAT man or us? 

 

In general they can issue a revised invoice demanding the VAT they should have charged. I can't recall anyone ever saying this had happened to them on the forum.

 

Its very rare for anyone to charge you too little VAT. Normally they want to charge you standard rate when it should be 0 or 5%.

 

Edited February 5, 2021 by Temp

[Barn Becs]

Thanks guys that's most helpful and reassuring