Skip Hire - Zero Rate?

[hmpmarketing]

Hi guys,

 

Am I allowed to ask a skip hire company to zero rate a skip on a new build? I was trying to find this answer on the net but didn't come across any info.

 

Thank you all

[Barney12]

Afraid not. Along with plant and tool hire its chargeable

[jamiehamy]

Nope

[hmpmarketing]

too bad!!! Thanks for the quick reply guys!

[Mikey_1980]

sometimes cash is king, it was with our skips

[Jeremy Harris]

1 hour ago, hmpmarketing said:

Hi guys,

 

Am I allowed to ask a skip hire company to zero rate a skip on a new build? I was trying to find this answer on the net but didn't come across any info.

 

Thank you all

 

 

The answer is as others have said, but as a very general rule, anything that is going to become an integral part of the structure, including some landscaping if it is a planning requirement, can be zero rated, or the VAT on materials you buy can be reclaimed.

 

If it's a service that's provided, that isn't contributing to an intrinsic part of the structure, then it can't be zero rated. 

 

The list of things you have to pay VAT on is quite long, but common examples are scaffolding, skips, toilet hire, surveys and legal fees.

[Temp]

The only way you might get skip hire zero rated is if you hired someone to do site clearance or similar and they provided their own skip. This is because if someone supplies two things, one zero rated and one not, they should charge the lower rate on everything. 

[hmpmarketing]

Thanks guys for the feedback! Sorry as I could not reply, frame assembly happening this week!

[Triassic]

I was wondering how much are you paying for skip hire, I've just been quoted £465 for a 16 cubic yard skip ( a builders skip with high sides), sounds a lot to pay for a skip?

[Barney12]

I'm paying £280+VAT for a mixed waste 10t (8yard) skip.

Thats the cheapest I can get from any local provider. 

Quite a few of the skip companies consider our address as "special" and whack the price up .

[Jeremy Harris]

We paid around the same, £260 + VAT for a standard 8 cu yd skip.  We were lucky in that there's a skip hire place in the next village over, around 3 miles away, and I think that may have reduced the price slightly.  Their pricing was based on distance, they had a map with a series of concentric circles with different price zones.

[Triassic]

After a bit of shopping around I've found a local firm who will supply an 8 cubic  yard skip for £230 inc vat. 

[Ferdinand]

Probably you would need a one man band who turns over less than the VAT limit.

[PeterW]

£204 delivered inc VAT  for 2-3 weeks and that's an 8 cuM one. 

[Oz07]

Should hope it's delivered that's the whole point of a skip! Does that include collection!?

[RichS]

25 minutes ago, Oz07 said:

Should hope it's delivered that's the whole point of a skip! Does that include collection!?

 

?

 

£198 , delivery AND collection, inclusive here

[Ferdinand]

My last 2 have been:

 

10 yard skip for up to 4 weeks. £230 inc VAT. Was tricky negotiating the 4 weeks, then the builder filled it in one day flat.

 

7 yard skip for up to 2 weeks. IIRC £160 inc VAT (invoice currently filed) 

 

Ferdinand

 

Edited June 11, 2017 by Ferdinand

[Barney12]

I think as @JSHarris said. A lot will be dependent on your nearest yard/waste transfer station. For us thats a good 40-50 minutes each way. 

[Barney12]

Of course a lot also depends on the skip companies view of "cheeky boards". That can make a big difference.  

[new-builder]

On 27/02/2017 at 15:36, JSHarris said:

 

 

The answer is as others have said, but as a very general rule, anything that is going to become an integral part of the structure, including some landscaping if it is a planning requirement, can be zero rated, or the VAT on materials you buy can be reclaimed.

 

If it's a service that's provided, that isn't contributing to an intrinsic part of the structure, then it can't be zero rated. 

 

The list of things you have to pay VAT on is quite long, but common examples are scaffolding, skips, toilet hire, surveys and legal fees.

 

If I'm correct, the original question was could a builder ask the skip supplier to zero-rate the skip hire, to which the answer was no.

 

But as we are a VAT-registered company does that mean we can or cannot claim back the VAT that was charged on the VAT invoice the supplier sent, please?

 

Edited November 2, 2018 by new-builder
to clarify

[Jeremy Harris]

2 hours ago, new-builder said:

 

If I'm correct, the original question was could a builder ask the skip supplier to zero-rate the skip hire, to which the answer was no.

 

Going one on from that, as we are a VAT-registered company does that mean we can or cannot claim back the VAT that was charged on the VAT invoice the supplier sent, please?

 

 

AFAIK, the VAT rules are that skips aren't zero rated, no matter how they are supplied or who pays for them, so being a VAT registered company probably doesn't make any difference.  As an aside, the self-build VAT rules don't apply to a VAT registered company that's building a house, so some of the advice on VAT here may well need to be filtered with that in mind.

[Ed Davies]

2 hours ago, JSHarris said:

As an aside, the self-build VAT rules don't apply to a VAT registered company that's building a house, so some of the advice on VAT here may well need to be filtered with that in mind.

Indeed. But when said VAT-registered company comes to sell the house they can zero rate the whole lot, can't they? They could, of course, reclaim the VAT on skip hire in just the way that any VAT registered company can reclaim the VAT on any inputs. So in the end the tiny proportion of the sale price which came from the skip hire would get zero rated. Or have I totally misunderstood something?

[Jeremy Harris]

1 minute ago, Ed Davies said:

Indeed. But when said VAT-registered company comes to sell the house they can zero rate the whole lot, can't they? They could, of course, reclaim the VAT on skip hire in just the way that any VAT registered company can reclaim the VAT on any inputs. So in the end the tiny proportion of the sale price which came from the skip hire would get zero rated. Or have I totally misunderstood something?

 

Not sure, TBH, as I don't know how the VAT rules apply to developers.  I would have assumed that developers have to follow similar rules to self-builders, with regard to what they can and cannot zero rate, just because I can't see a good reason for HMRC having two sets of zero rate eligibility rules.  Then again, perhaps I'm being a bit naive in making such a bold assumption!

[Ed Davies]

I think they just build a house paying and reclaiming VAT like any normal business then sell it either without VAT or zero VAT (not sure which, technically different but same effect for the purchaser). Assuming the purchaser isn't VAT registered.

[Jeremy Harris]

I'd wondered if they were required to pass on the VAT for ineligible items to the buyer, in terms of just adding it to the sale price.