Zero rated VAt on self builds - advice

nozza76

Having just acquired a plot, my husband and I are about to embark on our first self build which will be for us to live in.
We are aware that labour and materials are exempt of VAT if for a new build however there are certain exceptions to this rule, also I believe any VAT to be reclaimed must be done in one hit at the end of the build.
We are trying to get an idea of all of the rules that apply to this before we start - can we claim the VAT back from the solicitors bill for the purchase of the building plot? Also we've heard there are certain quirks eg. fitted wardrobe - we were advised that in order to qualify, it must consist of only a hanging rail with no additional "non-essential" components otherwise it does not qualify.
Does anyone know of any useful references that we can study up on what is included and what is outside the boundary of what we can claim back?
Thanks

JasonLVC

Have a look at this link - direct to HMRC's official noteice on self-build (DIY scheme).

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000150&propertyType=document

Have got to go into a meeting now so cannot really add anymore for now, but will revisit this thread later tonight/tomorrow to add a personal comment.

JasonLVC.

JasonLVC

Professional fees are generally not recoverable under the DIY scheme.

Wardrobes are fun. The basic rule of thumb is that they should not cover more than three surfaces and not have backs on them - so if you have a gap between a chimney brest and add some doors and rail to the gap that'll be okay, but if you have wardrobes that go along one wall and then round to another wall (L shaped so to speak) or maybe wardrobes that turn into built in over-bed cupboards as well then that is not going to get past the test. So stick to three walls, no backs and minimise the shelving inside otherwise it'll be construed as furniture, not a fixture/fitting.

And it is very important that you submit your claim within the deadline, once you have a completion or habitation certificate issued by the building regs guys - so keep an eye on calendars and dates.

nozza76

Thanks alot JasonLVC, that's a great help!

shamac

We claimed ours back last year. Make sure ALL your receipts have a vat number and if they are for over £100 you need your address on it too.Have a big box to keep them in-you will be amazed how many you end up with! It is quite straight forward to fill in the form and the helpline number you get is very good in our experience. We had our money within a fortnight-but not sure if this is usual! HTH