Dear Les - I'm hoping you can help me with a similar issue to this. For the purposes of this query I am a consumer.
Recently a builder incorrectly charged me VAT at the standard rate for pre-construction work on a new build project despite my argument that this work should have been zero rated as detailed in VAT Guidance for new build section 3.1.2. We had an agreement that the VAT amount charged would be refunded to me once planning permission had been granted ( although planning permission is not required to zero rate services according to the guidance notes ). When planning permission was granted I sent the builder a copy and asked for my refund. Since then, he has constantly refused to pass me the refund saying he can't do it because I am not VAT registered - this can't be correct can it ?
Advice from HMRC tells me that he is obligated to refund me the incorrectly charged VAT either by raising a credit note invoice for the amount to be refunded or by simply completing a VAT652 form.
Can you please advise how i should proceed if the builder continues not to pay - could I proceed in the Small Claims court and if so are there any VAT rules and regs that I can quote ?
Many thanks for your help Les.
Kind regards
Graham Harding
My answers
Dear Les - I'm hoping you can help me with a similar issue to this. For the purposes of this query I am a consumer.
Recently a builder incorrectly charged me VAT at the standard rate for pre-construction work on a new build project despite my argument that this work should have been zero rated as detailed in VAT Guidance for new build section 3.1.2. We had an agreement that the VAT amount charged would be refunded to me once planning permission had been granted ( although planning permission is not required to zero rate services according to the guidance notes ). When planning permission was granted I sent the builder a copy and asked for my refund. Since then, he has constantly refused to pass me the refund saying he can't do it because I am not VAT registered - this can't be correct can it ?
Advice from HMRC tells me that he is obligated to refund me the incorrectly charged VAT either by raising a credit note invoice for the amount to be refunded or by simply completing a VAT652 form.
Can you please advise how i should proceed if the builder continues not to pay - could I proceed in the Small Claims court and if so are there any VAT rules and regs that I can quote ?
Many thanks for your help Les.
Kind regards
Graham Harding