Self
Build and VAT
One
of the most pleasant tasks of building
your own home is making a VAT repayment
claim at the end of the build. You can
make a claim if your new house is a private
residence and you will need detailed proof
of VAT paid on all the goods for which
a claim is to be made.
The
claim must be made within three months
of the building being completed and you
only get one chance, so you need to get
it right first time.
You
cannot claim for furniture, carpets, curtains,
white goods, trees and plants (unless
a planting scheme is a specific condition
of your planning approval), nor for burglar
alarms, professional services, equipment
hire, transport of materials and tools
used. HM Customs & Excise publish
a very good guide on this matter - VAT
Refunds for DIY House Builders, Notice
VAT431NB. This clearly explains
who is eligible, how to make a claim and
what can be claimed.
Generally speaking, anything
that is both supplied and installed/fitted
is zero rated and you don't pay any VAT
in the first place, so items like The
Timber Frame and Heating systems that
are supplied and fiited by your plumber
should not include any VAT.
Anything that is just supplied, but fitted
by you or another tradesman is charged
at the usual rate (puchasaes from DIY
stores). It is these purchases that will
form the basis of your VAT reclaim.
Tips
for a Trouble Free Self Build VAT claim
1)
Never pay VAT in error as it can't easily
be reclaimed.
Check before you pay anything whether
it should be VAT rated, Zero rated, or
VAT rated but reclaimable
2)
Very few DIY store till reciepts will
have your name and address on. These are
normally still accepted by the VAT man,
however we have heard of clients who have
struggled in the absence of a name and
address, so for larger DIY store purchases
ask for a proper VAT reciept with your
name on it. These are often filled out
by hand which can take a while!
Alternatively, use a credit card for all
purchases and use you credit card statement,
which includes address details, with the
reciepts attached
3)
There are some great deals online and
you'll want to take advantage, but watch
out as even some reputable companies won't
automatically send VAT reciepts.
4)
Some online companies send VAT receipts
by email in HTML format. If you have a
program that turns HTML messages into
plain text for security reasons, you may
loose important information - like the
VAT number which is sometimes stored as
an image.
5)
Staple till reciepts to invoices/reciepts
and put each in a seperate plastic A4
sleeve. Reciepts come in all sizes and
wading through a pile of little curls
of paper to find one is no fun.
6)
For some reason the VAT man wants reciepts
that itemise VAT seperate from those that
just have an including VAT total. These
go on different parts of the reclaim form
(parts D and E). It might help to use
two ring binders and put reciepts in the
right one as they arrive.
7)
Ask your kitchen supplier if he can quote
an all inclusive price including 'free'
white goods. This is because you can reclaim
VAT on a kitchen but not on white goods...
Bit of a loop hole.
8)
VAT abroad is sometimes higher (in Belgium
it's 21%) but you can reclaim the full
ammount from the UK VAT man in the same
way as any other item. It's only ocasionally
worth making a trip but if you've got
a van and are going away anyway it might
be worth it. (Be careful buying plumbing
fittings as they may not work with UK
fittings)
9)
Most
likely you will move in before your new
house is fully completed and the garden
is done. Don't forget to order materials
for hard landscaping before submitting
the reclaim. Extra bags of cement, bricks
etc.
