If you are a DIY builder and have built a new home you maybe eligible to claim back VAT on the building materials under the ‘DIY housebuilders’ scheme’.
The claim for a VAT refund must be within 3 months of completion of the building work.
You can apply for a VAT refund on building materials and services if you’re:
- building a new home
- converting a property into a home
- building a non-profit communal residence, for example a hospice
- building a property for a charity
You can claim a refund for building materials that are part of the building and cannot be removed without tools.
The materials that can be claimed include items such as bricks, cement, fitted kitchen furniture but not freestanding fridges, freezers, and cookers. Bathroom accessories such as fixed towel rails can be claimed along with sanitary ware and shower units. Fixed curtain poles can be claimed (but not curtains and blinds). The list is very specific and detailed guidance on the materials that qualify, together with what building projects qualify can be found on the application form at www.gov.uk/vat-building-new-home.
There are different forms for either a new build or conversion. The forms contain a schedule of the input tax being claimed and you can complete the pre-printed table on the form or provide your own table in a similar format, e.g an Excel spreadsheet.
When making the application you must include the following documents:
- all original invoices (this is worth remembering if you are about to embark on a project, keep all original invoices safe and ensure they show the VAT number and they are invoices and not just order confirmations)
- either Full Planning Permission, or both the Outline Planning Permission and Approval of Reserved Matters
- a full set of building plans
- the Building Regulation Completion Certificate or other evidence the work is complete – there is a list of accepted documents in the form
If you are considering a new build as a DIY builder or have recently completed the build and you are ready to make a claim please contact us and we can either do the claim on your behalf or advise you on what is allowed.
Article written by Debbie Chaplain