Frequently Asked Questions
Below are a few questions and answers you may find useful.
1.
When should we instruct you?
The simple answer to this is as soon as possible. Whilst the process of reclaiming VAT is seen as the very last step in your self build there are benefits to employing us as soon as possible. Not only can we give continued help and advice throughout your self build we can also highlight any issues with incorrectly charged VAT which can prove costly should you wait until the completion of your self build.
If you instruct us to act from the beginning of your self build and regularly send us your invoices we can sort them out and notify you of any incorrectly charged VAT. This enables you to contact the relevant companies/contractors and raise the error with them and request a credit and refund for the incorrectly charged VAT. If you instruct us at the end of your build then we will still flag up any invoices with incorrect VAT, however you may find it a lot harder to get the companies/contractors to credit and refund you the VAT, especially if they have already submitted their VAT return and paid the VAT to HMRC. This can lead to £1000's been lost in incorrectly charged VAT.
You will not be able to reclaim any incorrectly charged VAT back from HMRC through the DIY Housebuilders Scheme.
2.
How do i send my invoices and documents?
HMRC need to receive original invoices so you need to post out your invoices and required documents to:
Wayne Turner
Claim It Back VAT Refunds
Mercury House
Willoughton Drive
Gainsborough
Lincolnshire
DN21 1DY
It is advisable to send all invoices by special delivery.
If you are in the Gainsborough area you can also drop off all invoices/paperwork at the reception in Mercury House.
3.
How will i know which invoices to send?
Part of our service is to sort through all the invoices and pick out the eligible and non-eligible ones prior to submitting the application to HMRC.
We recommend sending us every invoice you have in relation to your self build. Upon completion of your application we will return all invoices back to you.
HMRC require that all invoices have the suppliers name, VAT number, description and quantities of the goods, price of each item and VAT charged or VAT rate applied.
HMRC will not accept receipts or sales/order confirmations as valid documents.
4.
What documents do i need to send before my application can be submitted to HMRC?
We need the following documents:
- All original invoices
- A copy of the planning permission
- A copy of the approved plans
- Proof of Completion
More information about these documents can be found in the Welcome Pack once you instruct us.
5.
How is my refund paid?
HMRC will pay all eligible refunds direct to your bank account.
We will request this information in due course.
6.
I am planning to sell or rent my self build, can i reclaim?
No, you can only reclaim VAT if you have built or converted the property to be used as your main residence or holiday home. You can also build a property for a family member to use as a main residence.
7.
Do I have to be VAT registered to reclaim?
No, you do not have to be VAT registered. This is a scheme to help private individuals who wish to build or convert a property to use as their main residence.
8.
What type of building can I claim for?
Below are eligible new build and conversion projects
If it is a new build the following buildings are eligible:
+ Houses built on plots of land such as garden infills etc.
+ Houses built on the site of a previous residential property.
The existing property needs to be knocked down to the ground level, however you can retain cellars, basements and ground level slab. You can also retain one façade of the pre-existing structure as long as it’s part of the approved Planning permission.
+ Fitting out & finishing a new building shell.
A shell is a building which is structurally complete (Walls, Roof, Windows & Doors and Utilities) but not a functioning home. The shell will lack facilities to make it a liveable dwelling.
If it is a conversion the following buildings are eligible:
+ Redevelopment of a non-residential building into a dwelling house. Eligible examples include:
*Agricultural building i.e. Barn
*Redundant School or Church
*Office
*Shop
+ Previous residential dwelling. However this property needs to have been empty for at least 10 years prior to any building work commencing.
A building has been deemed to be lived in if it was a dwelling used as someone’s home. Buildings that have been used as a dwelling will not only include Houses & Flats but also:
* Public Houses & shops with non self contained living areas
* Bedsit accommodation
* Crofts
* Domestic Garages
A dwelling need not have been self contained or designed to a modern standard to be classed as someone’s home.
+ Fitting out & finishing a converted non-residential building
A shell is a building which is structurally complete (Walls, Roof, Windows & Doors and Utilities) but not a functioning home. The shell will lack facilities to make it a liveable dwelling.
Properties that are not eligible include:
+ Properties which have been refurbished and not vacant for at least 10 years prior to work commencing
+ Any property you intend to sell once completed
+ Any property you intend to rent out once completed
+ Extensions & Annexes
+ Caravans & other non permanent housing
+ Properties built outside the UK