VAT on your livery bill for DIY, anyone pay it and why?

Is the yard owned by farmers?

It is more usual to quote prices in farming circles without stating that VAT is to be added as most farmers will by choice be VAT registered. That way, we don't charge VAT on most of what we sell (livestock, hay, straw, etc) because it is zero rated but on the other hand we claim VAT back on fuel, fertilisers, etc.

The usual thing for non-VAT registered farmers is to sell at a price but mention "No VAT", otherwise we assume it has to be added.

As I read my previous post, where services are provided (grazing, stables, etc) VAT has to be charged by a VAT registered trader but not on hay, straw, or grain which are zero rated. But if these are included (i.e. livery includes ad lib hay etc) I think that would be vat-able. You may think that just grazing is zero rated, but does the landowner provide the fencing, water, attention, etc?

VAT is very complicated and since my former accountant made a £100 mistake adding up my £400 bill (in his favour, of course!), I wouldn't trust what they tell me. If you are a YO, get it in writing from the VAT office!
 
Last edited:
We were investigated by HMRC regarding VAT a few years ago as we ran two separate businesses, a livery yard and a riding school (one a sole trader and one a partnership). The HMRC investigators and our accountants argued back and forth over a couple of meetings and I contacted the BHS helpline who were fantastic. In one phone call they clarified everything and it was "interesting" that neither the HMRC and our accountants were aware of the true facts:

The supply of stabling and livery services together is exempt from VAT, provided that you allocate all, or an identifiable part, of the stabling for the sole use of the horse owner. If this is the way you plan to operate you would not be required to register for VAT. If you don't give horse owners an exclusive use of stabling, then the supply of livery services is standard rated and you would need to register for VAT once your turnover had reached the current VAT threshold. You can find out more on the HM Revenue & Customs website.

Obviously this applies more to full / part livery but may be of interest to others who have posted and are paying VAT on their livery.
 
DIY is non-VATable, it is exempt - but there must be no service included in the price.
Full and Part Livery are both VATable as there is a service attached to the cost.

VAT is very confusing and if there are exempt VAT supplies then they have to apply the partial exemption rules, which may mean they can't claim all of their input VAT.
 
I'm not an expert on this but my understanding is that pure DIY is not subject to VAT but services are.
So a standard stable/field rental shouldn't be VATable but Part/Full Livery is.

So for example - Say your part livery is £100 a week of which £30 is box rental, £30 is consumables (bedding/hay/feed) and £40 is services then yards would in need to charge VAT on the £40 service aspect.

The best thing for YO's to do is to set their weekly charges inclusive of VAT if it applies to them. I haven't ever seen livery charged at £X + VAT and unless I had been advised up front this was the case I would be pretty peeved to move to a yard without being told about this charge up front.
 
ihatework said:
I'm not an expert on this but my understanding is that pure DIY is not subject to VAT but services are.
So a standard stable/field rental shouldn't be VATable but Part/Full Livery is.

So for example - Say your part livery is £100 a week of which £30 is box rental, £30 is consumables (bedding/hay/feed) and £40 is services then yards would in need to charge VAT on the £40 service aspect.

The best thing for YO's to do is to set their weekly charges inclusive of VAT if it applies to them. I haven't ever seen livery charged at £X + VAT and unless I had been advised up front this was the case I would be pretty peeved to move to a yard without being told about this charge up front.
Click to expand...

As per my post above if a stable is provided for the sole use of a client's horse then the services provided to care for that horse are ancillary and so the total livery charge for full or part livery is VAT exempt.
 
You must log in or register to reply here.
Top