Hiring the digger - whose name on invoice for VAT reclaim?

[CalvinHobbes]

Please can you tell me does my name have to be on the invoice for the vat reclaim at the plant hire place or is it enough if the address is referenced and my bank card or credit card is used? 

[MikeSharp01]

4 minutes ago, CalvinHobbes said:

Please can you tell me does my name have to be on the invoice for the vat reclaim at the plant hire place or is it enough if the address is referenced and my bank card or credit card is used? 

I don't think you can reclaim the VAT on plant hire, only equipment and materials that are part of the finished build (as defined by the planning) and labour charged including VAT are allowable I think. 

[CalvinHobbes]

Ah right - thank you. 

[Temp]

Yes, sorry you can't reclaim VAT on tool hire. 

 

However if you hire a groundwork man to dig trenches and he hires a machine his whole invoice to you should be zero rated.

 

Not sure about scaffolding... I know you can't reclaim VAT if you buy or hire but what about hire and errect? 

[Drellingore]

On 15/01/2023 at 20:00, Temp said:

Not sure about scaffolding... I know you can't reclaim VAT if you buy or hire but what about hire and errect? 

 

If it's a new build that is zero-rated as per section 3 of VAT notice 708, erection of scaffolding is zero-rated:

 

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Goods hired on their own are always standard-rated. Examples include the hire of:

• plant and machinery (although plant hired with an operator can be zero-rated where all the conditions in paragraph 3.1.2 are met)
• scaffolding, formwork or false work (although the service of erecting or dismantling can be zero-rated where all the conditions in paragraph 3.1.2 are met)

 

 

If it's a conversion eligible under section 7, then it's standard-rated:

 

Quote

 

All other services are standard-rated. For example, you must standard rate:

• the installation of goods that are not building materials, such as carpets and fitted bedroom furniture
• the erection and dismantling of scaffolding
• [...]