DIY House Builders

The process of building or converting a property can be costly, and the VAT implications can add to the already substantial expenses. Fortunately, a special VAT Refund Scheme is available for DIY house-builders and those converting non-residential buildings into dwellings. This scheme allows eligible individuals to reclaim VAT incurred on construction or conversion costs, but it's important to note that it's only applicable when the building will be used for a non-business purpose.

VAT appeal consultants for diy house builders

At SolveVat, we understand that this scheme can be complex and confusing, which is why we offer our VAT expertise to help our clients secure the maximum VAT refund on their projects. We advise on complex legal points that may prevent a successful claim and also prepare and submit the DIY house builders claims on behalf of our clients.

When it comes to builders’ services, they’re usually zero-rated in connection with the construction of a new dwelling. However, if the owner purchases materials directly, VAT will be incurred on those items. Similarly, where a non-residential building is converted into a dwelling, zero-rating is unlikely to be available, and construction costs are likely to carry VAT at 5%.

It’s important to note that claims for the VAT Refund Scheme must be completed and submitted within a strict time limit, which can be difficult to meet when combined with the other challenges that come with self-build or conversion projects. Our team at SolveVAT is well-versed in this area and can guide our clients through the process.

We keep a close eye on the VAT Tribunals’ decisions, particularly those involving rejected DIY house builders claims. In response to this, HMRC issued a Revenue and Customs Brief 8 (2022) clarifying their policy that only a single claim is allowed under the DIY Scheme. However, where it’s agreed that a claim has been repaid in error, HMRC will accept a subsequent claim with evidence that the claim has been made within three months of completion.

Our VAT consultants for DIY house builders always strive to provide our clients with the most up-to-date and relevant information to ensure they receive the maximum VAT refund available.