Guides
Construction VAT, in plain English.
Written from the legislation and HMRC's own guidance. Each guide gives you the answer first and the reasoning after.
VAT on building work: 20%, 5% or 0%?
VAT on building work is 20%, 5% or 0%, depending on the building and the work being done to it. This guide explains what decides the rate and where each type of project usually lands.
Read the guide- Rates explained
My builder has quoted 20% VAT. Is that right?
Often it is, and sometimes it is not. Here is why builders default to 20%, when a lower rate can apply, and why the time to check is before the first invoice.
Published 7 October 2026 - Conversions
The 5% VAT rule most people miss: a changed number of dwellings
If building work changes the number of homes in a building, the conversion can qualify for 5% VAT. The property does not need to have been empty, which is where most people go wrong.
Published 7 October 2026 - Rates explained
Do builders charge VAT on labour?
Yes, if the builder is VAT registered. Labour carries VAT at the rate that applies to the job, and labour and materials supplied together take the same rate.
Published 7 October 2026 - For contractors
The domestic reverse charge for construction, explained
The domestic reverse charge makes the customer, not the supplier, account for VAT on many construction services between businesses. It changes who pays HMRC, not the rate.
Published 7 October 2026 - Listed buildings
Listed buildings and VAT: the 2012 change contractors still get wrong
Alterations to listed buildings stopped being zero rated on 1 October 2012. Here is what changed, why old paperwork still says 0%, and the reliefs a listed building can still qualify for.
Published 7 October 2026 - New build
Self-build VAT reclaim: what you can and cannot claim back
The DIY housebuilders scheme lets you reclaim VAT on building materials for a home you build or convert yourself. One claim, six months from completion, and no refund for VAT a contractor charged in error.
Published 7 October 2026 - HMRC guidance
VAT Notice 708 explained in plain English
VAT Notice 708 is HMRC's guidance on VAT for buildings and construction. This guide explains what it is, who it is for and what it covers, without the jargon.
Published 7 October 2026 - Materials
VAT on solar panels and heat pumps: 0% until 31 March 2027
Installing solar panels, heat pumps, batteries and insulation in a home in Great Britain is zero rated until 31 March 2027. From 1 April 2027 the rate is 5%.
Published 7 October 2026 - Materials
What stays at 20% in a zero-rated or 5% build
A zero-rated new build or a 5% conversion is never 0% or 5% on every line. Carpets, appliances, most fitted furniture, professional fees and supply-only materials stay at the standard rate.
Published 7 October 2026
Next step
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