I have a question relating to the 5% reduced-rate VAT for contractors. I've read notice 708, spoken with HMRC and spoken with VAT experts but there still seems to be some confusion.
So basically our company (we'll call Bricks Ltd) is a building contractor and undertakes building renovations for the landlord company (we'll call Invest Ltd). Now, we've established which renovations and works qualify for the reduced rate VAT so Bricks Ltd charge Invest Ltd at the 5% rate. Now, Bricks Ltd use contractors to do work for us such as scaffolding companies etc and I've been told that they must also charge us at the reduced rate of 5%. The scaffolding company, however, refuse to change their VAT rate. Could anybody please clarify the rules? Any help would be appreciated.