Claiming Back VAT on a Self Build Property

A bonus for self-builders is that they are able to claim back the value added tax (VAT) at the end of the build. At a time when money will be tight after spending so much on the build it is a treat to have a substantial amount of money to perhaps treat the family to a holiday after a year of hard work.

How Many Claims?

The self-builder can only make the one claim and must apply within three months of the house being completed. A certificate from the planning department, architect or bank you have your mortgage with will also have to be included. The certificate from the bank must state that you have been paid the final payment on the build. If you are unsure as when to claim this would be when the house is habitable and the planning inspector has signed off the last item on his list.

How to Claim

Information Notice 719 (May 2002) do it yourself builders and converters, can be downloaded from the HM Revenue & Customs website. This will explain how to apply for the claim pack along with other useful information. You will have to send with the form every invoice and document appertaining to the claim. It is advisable to keep a copy of all the paperwork just in case anything goes missing.

What to Claim for

HM Revenue & Customs are very strict on what can be claimed and what cannot be claimed. Examples of what can be claimed for are:

• Building materials
• Fitted kitchen furniture
• Cookers that supply hot water and heat
• Burglar alarms
• Fire alarms
• Flooring but not carpet
• Decorating materials
• Fire places
• Guttering
• Lifts and hoists
• Inside swimming pool
• Fencing
• Garden walls and drives

Not Allowed

Not everything you have paid VAT on can be reclaimed. Furnishings, gas and electrical appliances are not allowed. A good rule of thumb is to consider whether the article is fitted to the building, if it isn't then you cannot claim. If you use the services of a builder his charges should be zero-rated for a new house build. Outdoor swimming pools, tennis courts, fish pools and ornamental gardens.

Keeping Records

From day one it is essential that you keep a record of all your transactions that have a VAT element to them. A proper invoice or receipt is required with a company name, date and VAT number. Always check that the VAT has been calculated correctly. Under no circumstances alter the figures or any other information on the invoice. If there is a query return the invoice to the supplier keeping a receipt for your record. You cannot use a photocopy when claiming back VAT.Rather than making the claim a big job at the end of the build, enter the information onto the claim form each week. This way if there is a problem you will be able to investigate it rather than many months later when your memory of the transaction is a little stale.

Help and Information

HM Revenue and Customs supply detailed information within the claim pack along with details of a help line if required. If the thought of making this claim is too daunting an accountant can be hired to complete the claim although this will add to the cost of the build.