input vat on labour element of carpets claimable?

New house builder have hitherto claimed input vat on the labour only part of fitting new carpets

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We supply some carpets as standard and on other plots they are an optional extra.  If an optional extra, we charge the customer at zero vat inclusive of fitting.

However, we have been claiming input vat on the labour element of the fitting cost, irrespective of whether it is standard or not.  The labour charge is detailed separately on our sub-contractor's invoices allowing us to identify the input vat we are claiming.

Vat Notice 708 details that the vat on the carpet(s) cannot be claimed, but no mention of the labour charge for fitting of said carpet(s).

Is this an acceptable practice as far as HMRC are concerned please?

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By Accountant A
01st Aug 2018 18:02

Doesn't sound right to me.

Definitely best to run it by your accountant - or whoever gave you the advice in the first place.

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