I work for a construction company mainly dealing with new build housing. In this instance assume that our supplies are zero rated.
My understanding, when it comes to the reclamation of VAT, is that we should reclaim all VAT charged to us with the exception of the following items:-
Goods on hire
Professional services (presumably including engineers and consultants)
Scaffolding / Formwork
EG Invoice for bricks = £1000 plus VAT = £1200...we claim back £200 in VAT
Invoice for hire of plant = £1000 plus VAT = £1200 ... we claim back nothing and the cost to us is £1200.
I cannot understand why there doesn't seem to be a straightforward answer to this anywhere.....unless I'm looking in the wrong place. Also, what counts as plant hire? Are skips included?