I have a client who is into Loft Boarding and Insulation. Which can include new or replacement of Loft Ladders and hatches, loft lights and shelves.
He plays by what he sees are the rules under VAT Notice 708/6. So loft insulation installs are charged at 5% and if he needs to install a new loft hatch because there wasnt one already there then that is at 5% to.
There is a big competitor out there who charges 5% on all of it, regardless. So this company is charging 5% on loft Insulations, loft ladders loft hatches, raised loft zone flooring, loft lights etc even if there was some already there, so replacements.
My client has got lots of eveidence of what this other company is doing, interms of people he has been out to quote for are showing him the quote showing him that they are being charged 5% on the whole lot.
My Client has approached the directors of the company, in a friendly way and asked them how they 'get away with it' and the reponse he has got is that they were investigated about 18 months ago and they won the appeal! and going forward they are allowed to charge the 5% on everything. My Clients response was, oh so that has set a bench mark for others in the industry so we can all charge the same. Oh no said the director, its still a bit 'Iffy'
Obviously this big company is cheaper on quotes just because of the VAT and my client is getting rather annoyed. Has anyone got any advice apart from speak to the VAT office, because lets face it, the frontline staff on the VAT phones are not clued up and in the meantime my client is loosing business.