VAT - 5% for labour and materials?
So I asked for our tilers to issue an invoice at 5%, due to tiling a barn conversion, which they said they were happy to do. However, they seem to have charged the materials at 20% and labour at 5%.
Before I embarrass myself when replying to them, can anyone confirm I am right in thinking BOTH materials AND labour should be 5%?
From the ‘renovation / conversion’ claim form:
Eligible building materials that a business both supplies and installs follow the same VAT liability as the service. This means that if the service is reduced-rated then the building materials will be too.
The Scheme will only refund the correct amount of VAT (that is the VAT that was properly chargeable). If you have been charged VAT at the wrong rate (for example, because VAT was shown as standard-rated, rather than reduced-ra
