VAT and scaffolding

[vivienz]

I'm sure I read something recently about the VAT treatment of scaffolding hire and erection (I think it was  who mentioned it) but can't find the relevant entry. Can anyone enlighten me?

[Triassic]

 

[Ed Davies]

Hire of the materials requires full rate VAT and you cannot reclaim it. Labour to erect and dismantle the scaffolding should be zero rated.

 

VAT Notice 708 mentions scaffolding as a particular example of this in section 3.4.2

 

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

 

So it's helpful if the scaffolder puts as much of the price on the erection/dismantling and as little on the hire as they feel is reasonable. ?

Edited August 31, 2018 by Ed Davies

[newhome]

On 31/08/2018 at 13:42, Ed Davies said:

So it's helpful if the scaffolder puts as much of the price on the erection/dismantling and as little on the hire as they feel is reasonable. ?

 

Yes it's advantageous if they will do that but there was a test case that determined that it was no appropriate for a scaffold company to offer free hire if their labour costs were paid for so they shouldn't remove the hire charge completely.