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Sam, Accountant
Category: UK Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
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I'm a contractor on a New Build house project and have been

Customer Question

I'm a contractor on a New Build house project and have been invoicing the client at zero rate, HMRC is disputing that I am a main Contractor and therefore i'm not elgible to claim the Vat back
what would prove that i'm the main contractor?
if I have to pay the Vat how can the Householder claim the Vat Back?
Submitted: 11 months ago.
Category: UK Tax
Expert:  bigduckontax replied 11 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

I am sorry to be so dense, but please explain what you mean by being not eligible to claim the VAT back, what VAT?

VAT Notice 708 states:

'Subcontractors are contractors who work to other contractors. For the most part they can zero-rate or reduce-rate their supplies according to the building being constructed or worked on'

Which makes me wonder up which which tree HMRC are barking. Your invoicing at zero rate appears, on the face of it, perfectly proper.