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Where Taxpayers and Advisers Meet

Zero rate for new build trenches work?

dotto
Posts:58
Joined:Wed Aug 06, 2008 3:16 pm
Zero rate for new build trenches work?

Postby dotto » Wed Jun 11, 2014 9:22 am

We have employed a company to dig the trenches and lay the ducting for bringing utility services to two new self builds. This involved excavating 36 metres down the private access road. They are charging VAT for this work. I am not sure at this stage whether any of the VAT would be reclaimable.
The same company has quoted to reconstruct and resurface the access road and have indicated that this will be zero rated.
My question is - should the trench work also be zero rated.

Thank you for any help.

les35
Posts:639
Joined:Wed Aug 06, 2008 3:09 pm

Re: Zero rate for new build trenches work?

Postby les35 » Mon Jun 16, 2014 5:36 pm

I would expect works in the course of construction of a new dwelling would be zero rated. This will apply whether or not the project is a D-I-Y project. You cannot recover incorrectly charged VAT under the D-I-Y scheme.


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