What are the eligibility criteria for a vat refund for DIY builders? You’re eligible to apply for VAT refunds on building materials and services if you build your own house or convert an existing property into a home. You do not need to be VAT registered to claim a refund.
What qualifies for VAT refunds?
Refunds can be submitted in respect of building materials. These are incorporated into the building. Don’t detach the without tools or without damaging the building. Refunds are available for materials to use to build both new homes and for certain conversions.
A new home will qualify if it’s separate and self-contained to build for you and your family to live in. The property is not to occupy business purposes, although you can use one room as a home office.
Conversions will qualify if the property was previously used for non-residential purposes. It’s further converted for residential use. Conversions of residential buildings will only qualify if they’ve not been lived in for at least 10 years.
Where you use a builder, the builder’s services will normally be zero-rated where they work on a new home. However, you can claim a refund for VAT charged by a builder working on conversion.
What does not qualify?
Refunds are not available in respect of:
- Materials or services on which no VAT is payable. That’s because they are zero-rated or exempted.
- Professional fees, such as architects’ fees or surveyors’ fees;
- Costs of hiring machinery or equipment;
- Building materials which are not permanently joined to or part of the building;
- Fitted furniture, some gas and electrical appliances, carpets, and garden ornaments.
A refund is also denied if the building is not capable of auctioning separately. Let’s say as a result of planning restrictions.
How to claim
We can help you to get a refund from HMRC for a reasonable fee at ACCOTAX VAT Accountants in UK, We’ll charge a small admin fee. That’s the percentage of the refund amount. Within three months the claims are valid after the building work is done.
You must include all the relevant supporting documentation with your claim, such as valid VAT invoices to support the amount claimed. The refund normally returns within 30 days of making the claim.