VAT Claim Rejection – Please help

vatrejection

Good afternoon, 

I’ve just received a letter from HMRC rejecting my claim (VAT431C form) for a barn conversion. In summary: 

• I appointed a builder to manage the entire project on a supply and build contract 

• They invoiced me monthly for the work they had completed 

I have attached the letter from HMRC and an example of one of the invoices. I have contacted the builder however they are unable to supply any further information in relation to material and labour quantities.  

Additionally, it seems the asbestos should have been charged at 5% VAT, is this correct as the asbestos company stated that they can only invoice at 20% VAT. 

Do I have grounds to appeal to HMRC, particularly reason code 18, I would appreciate any ideas on how to respond as I can't obtain further information from the builder and the invoices would repeat items as they are paid on a completion basis.

 

Thanks 

Jeremy535897

If the VAT involved is substantial, you would be better seeking the services of a specialist VAT adviser.

What you say that the asbestos company argues is incorrect. The nature of the supply, rather than the nature of the supplier, determines the appropriate VAT rate. Provision of means of waste disposal is covered. See https://www.gov.uk/guidance/buildings-and-construction-vat-notice-708#section8