Adam2 Posted December 12, 2018 Share Posted December 12, 2018 Hi, I have a firm doing the investigation that is convinced that they must charge VAT - they claim to have spoken to HMRC at length about it. It's a new build with planning permission and in the VAT doc it says something along the lines that ground investigations AREN'T zero rated if planning is not yet approved as not demonstrably in close connection to the new build - hence implication that post planning approval this service should be zero rated. I'd like to talk direct to HMRC to confirm this and then put this company in touch with them. Trouble is I can't find where to call aside from general enquiry numbers re VAT where they want VAt numbers etc from you - any contacts you are aware of please advise Thanks Link to comment Share on other sites More sharing options...
Jeremy Harris Posted December 12, 2018 Share Posted December 12, 2018 They are right, VAT is payable on surveys, ground investigation work, etc. VAT is only not payable/can be reclaimed for stuff that actually goes towards the construction of the house, as a general rule. There is a fairly long list of stuff that you have to pay VAT on, ranging from professional fees (unless they are part of project managing the build), surveys, investigation work, equipment you hire etc. Link to comment Share on other sites More sharing options...
Adam2 Posted December 12, 2018 Author Share Posted December 12, 2018 Thanks @JSHarris but this is a bit confusing as an example in 3.3.6 is Services in sub-paragraph 3.3.4 are standard-rated where, for example: site investigation or demolition work is carried out before planning permission for the construction of a building that qualifies for the zero rate has been granted If site investigations are always standard rated why would it be used in an example like this? Seems odd Link to VAT 708 Link to comment Share on other sites More sharing options...
Jeremy Harris Posted December 12, 2018 Share Posted December 12, 2018 I believe that site investigation that is carried out as a part of the construction process, for example by the ground works/foundation system supplier as an intrinsic part of the construction of the foundation system, is zero rated, but stand-alone site investigation is treated in the same way as other site survey work and is liable for VAT. Link to comment Share on other sites More sharing options...
vivienz Posted December 12, 2018 Share Posted December 12, 2018 I think that @willbish got his zero rated. 1 Link to comment Share on other sites More sharing options...
newhome Posted December 12, 2018 Share Posted December 12, 2018 1 hour ago, JSHarris said: They are right, VAT is payable on surveys, ground investigation work, etc. VAT is only not payable/can be reclaimed for stuff that actually goes towards the construction of the house, as a general rule. That used to be the case but VAT notice 708 was altered in the last few years or so and now site investigation work (as in physical work not a desk exercise or just visiting the site to have a look) ‘should’ be zero rated by inference due to the wording but only once PP is approved or at least others have found that this is the case but that might be their good fortune as it’s very grey in the VAT notice. @Adam2 maybe call it foundation prep or something more closely aligned to the actual build. Failing that maybe ask your foundation supplier to include it as part of their scope of services? Here is the relevant section of the HMRC internal manual that may be useful to read: https://www.gov.uk/hmrc-internal-manuals/vat-construction/vconst02500 The number to call is at the top of the first post here (see below). When asked say DIY Housebuilders Scheme and you should be directed to someone who can answer questions without needing to be VAT registered. You may be on hold for a while as the call volumes are always ‘exceptional’ ?. 3 Link to comment Share on other sites More sharing options...
Temp Posted December 12, 2018 Share Posted December 12, 2018 (edited) Adam - Do you have planning permission yet? My understanding is that you can only reclaim VAT on things that relate to a building that lawfully qualifies for zero rating. So until you get PP for a building that qualifies for zero rating you may not be able to reclaim or get anything zero rated for VAT. This principle has been upheld in cases where the planned use of the building changed half way through construction. For example someone half way through building a large extension got their PP amended so that it could be sold off as a separate dwelling. That meant it went from not qualifying to qualifying for zero rating. HRMC only allowed the VAT reclaim on goods purchased after the PP was changed. If you have planning permission for a dwelling then yes I agree with others. It should be zero rated. Edited December 12, 2018 by Temp Link to comment Share on other sites More sharing options...
willbish Posted December 12, 2018 Share Posted December 12, 2018 3 hours ago, vivienz said: I think that @willbish got his zero rated. Yes that is right. Whether or not it was correctly zero rated is debatable! @Adam2 I can give you the name of the company that conducted my investigation. I think your location is within his area. Link to comment Share on other sites More sharing options...
Adam2 Posted December 13, 2018 Author Share Posted December 13, 2018 15 hours ago, Temp said: Adam - Do you have planning permission yet? Hi yes planning approved 14 hours ago, willbish said: Yes that is right. Whether or not it was correctly zero rated is debatable! @Adam2 I can give you the name of the company that conducted my investigation. I think your location is within his area. Appreciate it, probably should have asked here first for recs. Though they are underway :-) so i thought I'd look into this in parallel Link to comment Share on other sites More sharing options...
Temp Posted December 13, 2018 Share Posted December 13, 2018 What have you asked the ground works company to do? Is it just a site survey or are they digging holes and doing a ground condition report, percolation test or ? I'm wondering if they told the HMRC they are doing a site survey and the man at HMRC assumed it was just a survey? Architects, surveyors and planning consultants have to charge at standard rate and can't be reclaimed. Link to comment Share on other sites More sharing options...
Adam2 Posted December 13, 2018 Author Share Posted December 13, 2018 Doing the usual bore holes and trial pits. Will see if I can motivate them ? Link to comment Share on other sites More sharing options...
janelondon Posted April 17, 2019 Share Posted April 17, 2019 On 12/12/2018 at 19:58, willbish said: I can give you the name of the company that conducted my investigation. I think your location is within his area. Hi @willbish - do you mind PMing me who you used for your site investigation? Thanks! Link to comment Share on other sites More sharing options...
janelondon Posted April 17, 2019 Share Posted April 17, 2019 Ah @willbish - just saw on another thread that you used the same guy as @vivienz - Mini Soil Survey. (Couldn't edit my first post for some reason.) Link to comment Share on other sites More sharing options...
willbish Posted April 17, 2019 Share Posted April 17, 2019 2 hours ago, janelondon said: Ah @willbish - just saw on another thread that you used the same guy as @vivienz - Mini Soil Survey. (Couldn't edit my first post for some reason.) Yep that's right. Pass my regards to Martin, very helpful chap Link to comment Share on other sites More sharing options...
Bitpipe Posted April 17, 2019 Share Posted April 17, 2019 I've been trying (in vain) to get my GI contractor to refund VAT using the examples in the VAT notice - I wasn't that clued in when I commissioned them. They've refused, I keep chasing but don't expect any success. May pick up the phone again to VAT and have one last shot.. Link to comment Share on other sites More sharing options...
ollie Posted May 12, 2019 Share Posted May 12, 2019 Hi all, Just reading through this thread , I had a site investigation done... trial pits etc , but this was undertaken prior to getting planning permission. Presumably I don't have a leg to stand on re: getting a refund for the physical work aspect from the company that did the investigation? thanks, Oliver Link to comment Share on other sites More sharing options...
Adam2 Posted May 12, 2019 Author Share Posted May 12, 2019 I think you're right. I tried unsuccessfully even with PP. not a huge cost on its own but they will all add up.... Link to comment Share on other sites More sharing options...
newhome Posted May 12, 2019 Share Posted May 12, 2019 13 minutes ago, ollie said: Just reading through this thread , I had a site investigation done... trial pits etc , but this was undertaken prior to getting planning permission. Presumably I don't have a leg to stand on re: getting a refund for the physical work aspect from the company that did the investigation? You’re not eligible according to the letter of the law but nothing to stop you taking a punt, saying that it’s a new build and can you have it zero rated in line with VAT Notice 708. Nothing ventured ? Link to comment Share on other sites More sharing options...
ollie Posted May 12, 2019 Share Posted May 12, 2019 2 minutes ago, newhome said: You’re not eligible according to the letter of the law but nothing to stop you taking a punt, saying that it’s a new build and can you have it zero rated in line with VAT Notice 708. Nothing ventured ? Thanks for the responses, as you say worth a punt. So would I have to ask them to break down their invoices for labour (drilling etc) vs services (data analysis etc) and try get the labour element zero vat? or just ask for the whole lot to be zero rated? thanks in advance Link to comment Share on other sites More sharing options...
newhome Posted May 12, 2019 Share Posted May 12, 2019 I’d probably start off asking for the whole lot and then asking for the labour elements to be zero rated if they won’t zero rate the whole lot. Link to comment Share on other sites More sharing options...
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