I am often asked about the extent of zero rating for disabled adaptations to properties, especially in the context of building an extension to a home of for a charity!
More often than not, my clients are very surprised by how limited the zero rating VAT relief is here, but more concerningly there is a huge misunderstanding of how far the zero rate of VAT can apply to such building works!
Sadly, while of huge benefit to the customer, over application of the zero rate of VAT can lead to a hefty VAT bill for the supplier/builder, if HMRC inspect, with little chance of recouping such VAT from the unwitting customer!
Best thing to do is therefore always take some upfront VAT advice so you know you are not undercharging VAT and more importantly so you don’t run the risk of having any hidden VAT liabilities that will crop up in the future.
Pop me a message if you’d like to know more!
