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Japanese Knotweed Removal - Zero Rated?

Japanese knotweed removed from zero rated build

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Hi,

We are constructing a zero rated build, in which japanese knotweed was present. We had a company which billed us at zero rate to sort this issue, but another removed the knotweed. They are claiming that the hauliers they used doesn't come under zero rating. But I am going towards it come under site clearance, VAT notice 708 section 3.3.

Thoughts?

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By Wanderer
24th Jul 2019 10:38

Surely that's between them and the hauliers they use (think there's been something on here recently that just taking 'muckaway' is standard rated).

Anyway their arrangements with their hauliers are surely of little relevance. What is the arrangement between you and your supplier and does this come under zero rating?

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Replying to Wanderer:
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By Lsamuels
24th Jul 2019 10:48

The arrangement is that they remove the japanese knotweed for us. I believe this to be zero rated as it comes under site clearance for a completely new build property. Their accountant states it should be standard rated as it doesn't apply to these works.

I just didn't know whether you would class JK removal as site clearance or not?

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Replying to Lsamuels:
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By Wanderer
24th Jul 2019 11:00

I THINK you are saying something like:-
You used a company to 'sort the issue', dig it up, put it in a pile, treat it or whatever.
You used a separate company to arrange for the subsequent removal and they used a haulier.
Have a read of this:-
https://www.accountingweb.co.uk/any-answers/can-muck-away-be-zero-rated-...

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By Vile Nortin Naipaan
24th Jul 2019 10:37

What construction services did the hauliers provide?

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Replying to Vile Nortin Naipaan:
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By Lsamuels
24th Jul 2019 10:49

The collection and disposal of the japanese knotweed

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Replying to Lsamuels:
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By Vile Nortin Naipaan
24th Jul 2019 10:51

So, they put it on their lorry and drove it away?

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Replying to Vile Nortin Naipaan:
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By Lsamuels
24th Jul 2019 10:57

Yes. However this cost is not being charged from the hauliers directly.

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Replying to Vile Nortin Naipaan:
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By Lsamuels
24th Jul 2019 10:57

Yes. However this cost is not being charged from the hauliers directly.

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Replying to Lsamuels:
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By Vile Nortin Naipaan
24th Jul 2019 11:28

Ah, I see....

So, company A removed the knotweed, perhaps treated it and maybe bagged it up, and they engaged company B to put it on their lorry and take it away.

Company B should charge company A 20% VAT, because company B are supplying company A with a haulage service, not a site clearance service. Company A should however charge you 0% on the whole amount that they are charging you (which has been calculated with reference to the amount that they have been charged by company B), irrespective of the fact that company B has charged them 20% VAT (which they can recover).

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By Dib
24th Jul 2019 11:28

Don't forget that you can claim land remediation relief for this.

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Replying to Dib:
Psycho
By Wilson Philips
24th Jul 2019 11:36

Don't forget that only companies can claim land remediation relief.

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Replying to Wilson Philips:
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By Dib
24th Jul 2019 13:25

GPWM - I only tend to deal with companies...

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