Client has undertaken landscaping works for a new build property and charged VAT on the whole job - so far.

Their client has now said that the work should have been zero rated and wants the VAT back. Taken nearly 2 years to mention it and was happily accepting and paying quotes and invoices including VAT.

As far as I can see the majority of the work undertaken was not on the approved plans for the new build and would therefore not fall under the 'minimum that's required by the planning consent' or 'basic soft landscaping' works that can be zero rated. Therefore most of the work should be standard rated.

Obviously we are looking to minimise the amout that should be repaid as under the VAT FRS my client loses out!

Can anyone see an issue with my logic or offer any guideance on further research / hmrc manuals?

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