A plumbing client has invoiced a main contractor for their work on a new sports hall for an independent school. I assume that this is because it's intended to be used solely for a relevant charitable purpose (RCP) - correct?
His involvment is worth £30-£40k and the main contractor has told him that the project is Zero Rated and my client's invoices should be Zero Rated.
I've suggested that my client obtain a copy of the Zero rating certificate.
Having looked at this further, I came across a note on Centurion VAT Specialists website indicating that the Zero rating may not extend to subcontractors like my client. They say 'In respect of buildings intended to be used solely for RRP or RCP, the supply of construction work can only be zero-rated when it is made to the person who intends to use the building (or the part which qualifies for zero rating) for such a purpose. The main effect of this is that, whilst the main contractor can zero-rate their construction services (and, in some cases, materials) on such a building, a subcontractor must standard rate all supplies to the main contractor.
The rules for buildings designed as dwellings are slightly different as they allow for subcontractor’s supplies to be zero-rated. There is essentially no rule that says the services must be supplied to the person who will use the dwelling, unlike the above rule for RRP and RCP.'
Can anyone confirm the position?