New build

[dasmith]

I am helping a building fried deal with his VAT return, he is VAT registered and circa 50% of his work is new build houses.

I understand I zero rate his sales on the new build work but do I claim back the VAT on the expenses relating to these jobs?

Please, thanks
Dave

[Budget83]

Yes, partial exemption only kicks in when you have exempt sales and not 0 rated sales.

I would suggest getting an accountant to help with the vat returns, we see friends fall out over these sorts of things when the vat inspector comes calling.