VAT rating on skip hire

[Dave Schulz]

Hi everyone, 

 

I am a self builder and I am soft stripping a bungalow myself and  considering demolishing by using a local excavator and operator on a daily rate. My PP is for "demolition of existing bungalow and the erection of 2 new dwellings". I am at the stage where I will soon  need to be hiring skips to remove materials. Is skip hire zero rated under these conditions? 

 

Anv advice would be gratefully received.

 

Thanks

 

Dave

[nod]

Unfortunately not

 

[SimonD]

An alternative to save money here is to sort your waste and hire skips for inert waste. Some skip companies don't do it, but many do and it's generally much cheaper that way.

[Temp]

I think if you hired a company to demolish and clear site then their services to you should be zero rated.

[Dave Schulz]

Thank you all for your help. At least the cost of VAT is easily outweighed by the money saved by doing it myself.

[Conor]

Hiring skips is probably the most expensive way to get rid of waste. 

 

Better off sorting the risings, taking the timber to your local recycling centre in a car and trailer, metal to a scrap merchant, and either spread the rubble out on the site (compact for driveways etc) or get a grab lorry to take it away.

 

If you're room on site, just pile it all up and deal with it not by bit if you have time

 

Edited July 4, 2021 by Conor

[Oz07]

Is the digger man vat registered? Most likely they usually are

[DillyDilly]

instead of hiring a skip, why not purchase hippo bags and get some vat back ?

[newhome]

1 hour ago, DillyDilly said:

instead of hiring a skip, why not purchase hippo bags and get some vat back ?

You can’t reclaim VAT on hippo bags as they are not incorporated into the fabric of the building so don’t qualify in the same way as purchasing tools doesn’t qualify.