VAT rates in the construction industry (0%, 5%, 20%)

29 Jul 2025 | VAT

There are occasions when plumbers – and, indeed, anyone in construction can charge VAT at 5%.  But what are the rules? Standard rate of VAT – 20% Generally, plumbers charge VAT at 20% on: Most domestic repair and maintenance work Work to newly-built structures that...

How to complete a VAT return

2 Dec 2024 | VAT

Whether you are on the standard or the cash accounting scheme this is how you should complete your VAT return.  The only difference is that with the standard scheme you will include all transactions as at their invoice date, whereas for the cash accounting they are...

How to delay being VAT registered

5 Sep 2024 | VAT

VAT registration and small businesses VAT registration is a problem for small businesses who sell to the general public. When your annual turnover exceeds £90,000, you must register for VAT and pay 1/6th of your gross sales to HMRC. However, there are some ways that...

What is a VAT assessment?

7 Jun 2024 | VAT

The reason for HMRC sending you an assessment is that you are late submitting your VAT Return. If you pay the assessment you could wait a very long time for them to correct the amount after you send in your Return, which is especially annoying if they owe you money!...

Should I charge VAT on recharged expenses?

10 May 2024 | VAT

As a VAT registered IT consultant, I invoice an Agency for my time and I occasionally recharge expenses for travel and accommodation. My Agency refuses to pay the VAT on these recharged expenses – saying they are a ‘disbursement’ and VAT shouldn’t be applied. I’m out...

VAT reverse charge for building and construction services

1 Mar 2024 | VAT, Construction

On 1st March 2021, the VAT domestic reverse charge for building and construction services came into effect for VAT registered businesses within the Construction Industry Scheme (CIS) in the UK. In essence, the domestic reverse charge procedure means that a...