Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: VAT on site clearance work?

17 June 2024
Issue: 4941 / Categories: Forum & Feedback , VAT
VATable or zero rated?

I am confused about HMRC’s view that my client has provided VATable rather than zero-rated services for work carried out on the construction of new dwellings. Basically my client provides a driver and digger to remove soil and other substances from a new build site. My view – and that of my client – is that the services are zero rated because they relate to the construction of new dwellings. However an HMRC officer has explained that because the work of my client is controlled by the main contractor that he is invoicing – the contractor instructs him what to do each day – the supply is one of ‘staff’ and ‘plant hire’ rather than ‘construction services with equipment’.

It seems a strange approach by the officer especially as the contractor can claim input tax anyway. If the supply is standard rated will the reverse charge...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon