If there’s one financial levy that probably aggravates the Great British Public more than any other, it’s paying VAT on certain goods and services, especially at its current rate of 20 per cent. VAT can feel like a real sting in the tail when, for example, a builder’s invoice thuds on the mat following two weeks’ work on a new kitchen.
However, some construction company owners may be pleasantly surprised to hear that they don’t in-fact have to charge the full rate of VAT on all the jobs they do; and this is great news for their potential customers. It’s even possible that a stressing a reduced VAT rate, or even a zero rating (which applies in some cases), on a quote, could be the deciding factor when it comes to winning a job.
Here are a few examples of some construction jobs that are exempt from full VAT: supplying and installing certain mobility aids for elderly people (reduced rate – 5 per cent as opposed to 20 per cent); converting a building in to a house or flat (5 per cent); making alterations to suit a disabled person (zero rate); installing solar panels (5 per cent).
The devil is in the detail, however, and, if you run your own construction business, you may wish to consult with us further, here at ARN Hoxton. We can make sure all your bases are covered, and that you have all the information you need on VAT exemptions.