Last updated: 14 October 2026
How do you reclaim VAT under the DIY housebuilders scheme?
If you build your own new home, or convert a non-residential building into a home, and you aren’t doing it in the course of a business, you can reclaim most of the VAT on building materials through HMRC’s DIY housebuilders scheme. You make one claim within 3 months of the building being completed. You can claim online or on form VAT431NB (new builds) or VAT431C (conversions), with original invoices and evidence of completion.
Who can claim
- Individuals building a new home to live in, or for a relative to live in
- People converting a barn, chapel, shop or other non-residential building into a home
- Charities building for non-business use in some cases
You can’t claim if the property is built to sell or rent out, because that is a business activity.
What you can claim for
| Claimable | Not claimable |
| Building materials incorporated into the building, such as bricks, timber, windows, roof tiles, plumbing and electrical fittings | Professional fees, such as architects and surveyors |
| Fitted kitchen units (not appliances) | Tool and equipment hire |
| Built-in wardrobes (only in some cases) | Carpets, curtains and most white goods |
| Materials for conversions charged at 5% | Garden landscaping beyond basics |
Contractors’ charges
For new builds, contractors should zero-rate their services and the materials they supply, so there is no VAT to reclaim on those. For conversions, they should charge 5%. You can reclaim that 5% through the scheme.
Evidence you need
- Original VAT invoices in your name
- Planning permission and approved plans
- A completion certificate from building control, or another evidence of completion
- A list of all invoices and the VAT claimed
Example
A self-builder spends £120,000 on materials over two years, paying £20,000 VAT. Her completion certificate is issued on 1 March. She submits her claim by 31 May with all invoices, and HMRC repays around £20,000, less any items that don’t qualify.
Common reasons claims are reduced
- Missing invoices, or invoices not addressed to you
- Claiming for ineligible items
- Late claims after the 3-month deadline
- VAT charged incorrectly by contractors at 20% instead of 0% or 5%. Ask them to correct it, because HMRC won’t refund wrongly charged VAT
Mistakes that delay a DIY housebuilder claim
HMRC rejects or reduces many claims because invoices are made out to the builder rather than the claimant, because VAT has been reclaimed on items that are not building materials (such as white goods and carpets), or because the claim is sent more than 3 months after completion. Keep the completion certificate, planning permission and approved plans together, and list each invoice with its VAT amount. Ask your builder to zero-rate labour on a new build, because VAT charged in error on labour cannot be reclaimed through the scheme. Photograph each stage of the build too.
Frequently asked questions
Can I make more than one claim?
No. Only one claim per project.
What if my build takes years?
You can claim once the building is complete, within the 3-month deadline.
Is there a minimum claim?
No.
Can I claim if I am VAT-registered?
Only if the project isn’t part of your business.
Related: 5% VAT on renovations and VAT for builders.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with DIY housebuilder VAT claims. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
