Topic: zero rated building work

hi All
I’m a builder and I want to understand when do I zero-rate my supply? What happens if I install goods with my services – can I zero-rate the goods as well? Does this matter if I’m a subcontractor?


Hope you can help

Re: zero rated building work

Here’s a quick summary of zero, reduced and standard rated work:

1 ZERO RATED

-applies to NEW & QUALIFYING BUILDINGS below:

1.    Construction of a dwelling (house or flat)
2.    Construction of a building solely for a RELEVENT residential purpose (“RRP”) (nursing home, school buildings, student accommodation etc)
3.    Construction of a building solely solely for a RELEVENT charitable purpose (“RCP”).

Note:
-    materials on their own are standard rated. However, materials supplied with labour is zero rated. White goods like fridges are not zero-rated – only goods that are incorporated into the buildings are zero-rated.
-    Professional fees like architect fees are always standard rated.
-    However, design & build contracts where both the design and construction is under a single form of contract allows zero-rating of such services.

You can also zero rate when:

•    Supplying or installing goods for a disabled person in their own home
•    Making alterations to suit a disabled person


2 REDUCED RATE

•    Converting a building into a house or flat
•    Renovating or altering an empty house or flat
•    Supplying and installing mobility aids for elderly people
•    Supplying and installing certain energy saving materials and equipment
•    Supplying and installing certain heating systems and security goods when grant funded
•    Connecting or reconnecting to the mains gas
•    Converting a residential property into a different residential use – eg a house into flats

3 STANDARD RATE

•    All other construction work including for example,
•    Building an extension, annex or granny flat
•    Loft conversions
•    Repairs and renovations


NOTE:
If you are working on a building that will be for mixed use then you have to account for VAT separately e.g.  a shop (SR) with a flat over (ZR).