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charging VAT to charities

charging VAT to charities

Hello. A contractor has been carrying out repair work to a flat, which is owned by a charity. The flat has been unoccupied for around 8 years and once the work is completed it will be rented out. The building is listed, no alteration is allowed to be made only repairs. What rate of VAT should the contractor charge the charity? Thanks in advance for your help

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07th Mar 2016 14:03

construction work

Works should be charged at 5%. This is because it s the refurbishment of a dwelling, not because the receipient is a charity. Do check the rules in HMRC Notice 708, chapter 8. And, make sure you have written evidence that the property has been empty for at least 2 years.

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By Josh09
07th Mar 2016 14:11

Thank you. I am in the process of reading the VAT notice and its a minefield!

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07th Mar 2016 14:40

reduced rate construction work

The chapters on the reduced rate are not well worded. You might also try the internal guidance at http://www.hmrc.gov.uk/manuals/vconstmanual/index.htm but that will not shed much more light on te matter!
PM me if you wish.

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07th Mar 2016 17:37

Agreed
Reduced Rate - 5%

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