Tax dodge of the week: be sure to reclaim VAT on that building project
If you are planning to build your own house or even a granny flat for an ageing relative, don’t forget that you can reclaim the VAT on the cost of the materials used to build it.
If you are planning to build your own house or even a granny flat for an ageing relative, don't forget that "subject to a considerable bureaucratic rigmarole" you can reclaim the VAT on the cost of the materials used to build it, says The Schmidt Report.
A similar DIY scheme also applies where you are converting a previously commercial building into a residential building, and you are still eligible if you hire builders to do the work for you.
You must be "well-organised and prompt" in order to claim, however, says ebuild.co.uk. Make sure you read all the relevant regulations prior to starting your project as you may otherwise find yourself ineligible to claim and "keep an eye out for any changes to the rules during your project".
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In general, you can claim for building materials, permanent fixtures and labour, but not removable fixtures such as carpets and curtains or professional services such as architects and surveyors. You must keep VAT invoices and claim within three months of receiving your completion certificate from Building Control.
For full details, see VAT Notice 719 on the HMRC website.
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