It is possible to build your own house or carry out your own barn conversion and claim back the related VAT. The scheme is aimed at putting the man on the street in the same position as a VAT registered house builder. The HMRC section dealing with such claims are notorious for examining each claim in great detail and rejecting or reducing claims on a technicality. One of which is the time limits in which a claim should be made and this is within 3 months of completion.
But when is a job complete?
In a recently decided case of B Bowley v HMRC the project was spread over 20 years as there were delays in finalising the scheme and it was only on completion of the garage that a claim was submitted. HMRC cried “foul the first tier tribunal begged to differ and accepted that the garage construction was part of the original project and within the three month claim period.
Actions not ideal for cash flow but a moral victory for the taxpayer. If you are thinking about or in the middle of a DIY project then we would recommend you take early advice and present your claim in a clear fashion to avoid disappointment. Our experienced VAT specialist Nigel Smith would be pleased to assist with your claim.