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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
You are correct, VAT should only have been charged on these works at 5%. The only way to do this would be to go to the contractor or contractors who did the job and get them to raise a correct invoice. You will not be popular!
Advise the builder that he is charging VAT at the standard instead of the reduced rate, calculate the excess you have paid and recover by underpaying any future bills. The risk here, of course, is that he will simply walk away from the job.
I am so sorry to have to rain on your parade.
Well they can adjust it in the long term by underpaying VAT, but it is a palaver. I would not be too kind on the builder, he has pocketed 15% of the costs and may only have accounted for reduced rate of VAT to HMRC.
No, VAT Notice 708 is specific on this matter:
'The supply of architectural, surveying, consultancy and supervisory services is always standard-rated.'
I also regret to have to tell you that you should have warned the contractor that the supply was reduced rated before work commenced for the convenience of all concerned.
No, he could do it by issuing correct invoices and creating a suspense account in his books for the overcharged 15% then as he underpaid HMRC in subsequent periods the account would be written off.
None, he would just need supporting evidence in the event of an investigation and the old and revised invoices would cover that. I reckon it must happen more often than you realise.
I feel that you are over worrying on this matter. Reduced rate building services happen every day of the week.
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