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HMRC VAT Contact Number - Ground Investigation


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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

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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.

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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

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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.

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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’ ?

 

 

 

 

  • Like 3
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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 by Temp
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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

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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.

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  • 4 months later...

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..

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  • 4 weeks later...

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 

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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 ?

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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 

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