Are you missing out on applying the 5% Reduced Rate for VAT? Category: Property & Construction - Posted On: Nov 22 2022 To incentivise the improvement and regeneration of existing buildings, HMRC offer a reduced rate of 5% VAT. However, opting to apply the reduced rate is not common as some companies and advisers aren’t familiar with the VAT rules and prefer to stick with zero rated and standard rated (20%). This comes down to a lack of understanding on what qualifies for reduced rate. Below are some examples of conversion works that qualify for the 5% VAT rate: Property Before ConversionProperty After Conversion Single household dwellingMultiple occupancy dwelling or Relevant residential purpose building Multiple occupancy dwellingSingle occupancy dwelling or Relevant residential purpose building Relevant residential purpose buildingSingle household dwelling or Multiple occupancy dwelling Any building not listed aboveSingle household dwelling or Multiple occupancy dwelling or Relevant residential purpose building The reduced rate can also be applied when renovating certain types of buildings that have been empty for over 2 years. It is up to the supplier to be able to prove the property has been empty via electoral roles and empty property registers. Not using the reduced rate can inflate the costs in carrying out these property conversions and in a time where costs are under the microscope more than ever, simply applying the correct VAT rate could be an instant win. Our EQ Property & Construction specialists have the knowledge and experience around this complex area of VAT and can advise on the correct evidence needed to support your claim. If you think that the work you are doing may qualify for this, please email our EQ Property & Construction team at property@eqaccountants.co.uk or contact one of our offices. Alternatively, if you have any other questions regarding VAT, please email our EQ Taxperts. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology
Are you missing out on applying the 5% Reduced Rate for VAT? Category: Property & Construction - Posted On: Nov 22 2022 To incentivise the improvement and regeneration of existing buildings, HMRC offer a reduced rate of 5% VAT. However, opting to apply the reduced rate is not common as some companies and advisers aren’t familiar with the VAT rules and prefer to stick with zero rated and standard rated (20%). This comes down to a lack of understanding on what qualifies for reduced rate. Below are some examples of conversion works that qualify for the 5% VAT rate: Property Before ConversionProperty After Conversion Single household dwellingMultiple occupancy dwelling or Relevant residential purpose building Multiple occupancy dwellingSingle occupancy dwelling or Relevant residential purpose building Relevant residential purpose buildingSingle household dwelling or Multiple occupancy dwelling Any building not listed aboveSingle household dwelling or Multiple occupancy dwelling or Relevant residential purpose building The reduced rate can also be applied when renovating certain types of buildings that have been empty for over 2 years. It is up to the supplier to be able to prove the property has been empty via electoral roles and empty property registers. Not using the reduced rate can inflate the costs in carrying out these property conversions and in a time where costs are under the microscope more than ever, simply applying the correct VAT rate could be an instant win. Our EQ Property & Construction specialists have the knowledge and experience around this complex area of VAT and can advise on the correct evidence needed to support your claim. If you think that the work you are doing may qualify for this, please email our EQ Property & Construction team at property@eqaccountants.co.uk or contact one of our offices. Alternatively, if you have any other questions regarding VAT, please email our EQ Taxperts. All News View the latest news stories from all of our sectors. View All News News by category View the latest news stories from a specific sector. COVID-19 EQ News People Experienced Professional Graduate Intern RGU Placement School & College Leaver Services Audit & Reporting Corporate Finance EQ Accounting Bookkeeping Cloud Accounting Management Accounts Payroll Taxation International Tax Making Tax Digital Personal Tax Specialisms Agriculture Charities Engineering & Manufacturing Healthcare Leisure Food & Drink Professions Property & Construction Technology