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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5326
Experience:  FCCA FCMA CGMA ACIS
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I had my house renovated, it was a building with change of

Customer Question

I had my house renovated, it was a building with change of use certificate so most of the work was at lower rate VAT. Certified and agreed from planning permission. I had problems during the construction with incorrect interim bills and mistakes on the VAT calculations. I am now due to pay the retention (2.5%) and from what I understood the Vat rate for the retention should be at the same rate as the work itself, however the building company has decided that because it is a retention it should be at usual Vat rate rather than the lower rate. Where in the legislation can I find this ?
Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: They are not great builders !!!
Submitted: 6 months ago.
Category: Tax
Expert:  bigduckontax replied 6 months ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

You can find all about this in VAT Notice 708. Here it is:

https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction

In my opinion, the retention rate of VAT should follow the principal.

I do hope that you have found my reply of assistance.

Expert:  bigduckontax replied 1 month ago.

This question has appeared on my list again. Do you have a follow-up?

You should refuse to pay the bill until the VAT position is correctly charged at the appropriate rate.

Customer: replied 1 month ago.
No I am trying to cancel membership and struggling to do so
Expert:  bigduckontax replied 1 month ago.

To which membership do you refer?