Reclaiming VAT from house build!

JacquieH_2

A builder built me a house 6 months ago, but I did the architects/planning applications etc., fitted the kitchen/bathrooms/floors etc etc and have over £700 of VAT which I have paid and which I think I should be able to reclaim. I have looked at the VAT on-line forms but they don't say if there is a cut-off date? Anyone know anything about this?

nadnad

i don't know about a cut off date but I do know that you can only claim once so make sure you have everything included in your claim. You can also claim on things like door handles etc - I can post you a full list if youi don't have one. I'm about to start building my own house as well.

Can I just ask - did your builder charge you VAT or not? I'm a bit confused here and can't get hold of my builder to ask him. eg did he charge you vat on everything and then you can claim that back - or did he not charge you the vat and just work it out himself?

JacquieH_2

Thanks to both of you....No, the builder didn't charge VAT....nor did he explain how I could reclaim what I paid!
I am in the house but due to some plumbing problems, we still haven't had the final inspection from the Council Building Inspector nor am I paying Council Tax even though I said I moved in 2 months ago!! I'm hoping this will get around the completion date issue as I have actually been in it for a few months now! I didn't realise there was a cut-off!
As for building your house. I needed a mortgage to complete it (£32k shortfall in funds). The builder didn't implement a NHBC Builders warranty so I couldn't get a mortgage ANYWHERE....even though the house was valued at £350k. Lenders will NOT lend on new builds without the 10 year warranty! I had to get a personal loan in the end! Be warned!

nadnad

i was just poking about on the net apparently builders are usually zero rated for new builds so they don't have to pay any vat on anything therefore dont charge you anything. we've already got our self-build mortgage and our builder is NHBC registered and will have the 10 yr warranty so thats alright.

i would imagine if you haven't had the final inspection then the house isn't deemed completed which would allow you to still claim the VAT. i'll try and find out for definite though.

JacquieH_2

Thanks....I intend asking my builder tomorrow if he can support it! There are stilll 2 ceilings to re-plaster from the failed plumbing inspection, so technically it's not finished! I witheld £2k from the final payment so again, technically, it's not fully paid for either. I think that could swing it! I'm still on good terms with the builder so I'm sure he'd support me in this.

windym_2

JacquieH wrote:

Thanks to both of you....No, the builder didn't charge VAT....nor did he explain how I could reclaim what I paid!
I am in the house but due to some plumbing problems, we still haven't had the final inspection from the Council Building Inspector

Your time starts from completion. Completion is the 'signing off' of your build by the building inspector. So your time hasn't started yet.

nadnad wrote:

i was just poking about on the net apparently builders are usually zero rated for new builds so they don't have to pay any vat on anything therefore don't charge you anything.

Builders are either VAT registered or not. If they are then they must zero rate any work on a new build property (or reduced rate on a qualifying conversion).

Likewise, any person/company that does work for you should not charge you VAT, this would include the water board who connect initial water. They have a habit of charging VAT.

JacquieH wrote:

As for building your house. I needed a mortgage to complete it (£32k shortfall in funds). The builder didn't implement a NHBC Builders warranty so I couldn't get a mortgage ANYWHERE....even though the house was valued at £350k. Lenders will NOT lend on new builds without the 10 year warranty! I had to get a personal loan in the end! Be warned!

You could check with your architect. Some will issue an architects certificate (15 year). This will depend on their involvement during the build. Ours cost £600 plus VAT (which is not reclaimable!) and will be issued once completed. This will enable us to get a mortgage/sell the property in the same way as with NHBC.

JacquieH wrote:

A builder built me a house 6 months ago, but I did the architects/planning applications etc., fitted the kitchen/bathrooms/floors etc etc and have over £700 of VAT which I have paid and which I think I should be able to reclaim. I have looked at the VAT on-line forms but they don't say if there is a cut-off date? Anyone know anything about this?

You can check exactly what is covered on the website (as mentioned above). A general rule of thumb, is that if it requires more than a screwdriver to remove it, then it is deemed a fixture and therefore reclaimable. This is very general, but you should check specifics on the website list. Plans and fees are not reclaimable, so any VAT paid on those is gone. Bathrooms and Kitchens (not white goods) are reclaimable and so are the floors if they are fixed (ie wood or tile).

HTH.

JacquieH_2

Thats been a great help, thanks! I contacted the NHBC and with my builders' rating it woould have only cost £370!!! We own the land so it was just the house that the builder charged for. He didn't charge VAT....so I've just got to get all the details together and claim. My estimate is around £800 so its worth it! Re the architect...he is a family friend who is retired....so doesn't have professional indemnity, therefore couldn't issue a certificate. he describes himself as an Architectural Illustrator now....just draws the plans!
Thanks again...really great!

missile

JacquieH wrote:

The builder didn't implement a NHBC Builders warranty !

Seems like one always needs to look out for dodgy builders, it is not only when buying in Spain

anitha

Hi

We are in the rpocess of buying a house that has had no maintenance or building work done on it in 25 years. It is very delapitated, putte used to seal windows, walls cracked and otherwise very antiquated. Our builder has said that it would cost us £40000 to renovate including wiring, GCH, radiators, new fitted kitchen, adding a bathroom and updating current bathroom.

Am I correct in saying thta although we are sourcing and paying for all items we cannot reclaim VAT ?

thanx

nadnad

no you can only reclaim the vat on a completely new build.

although there is something about either renovation/extensions being rated at 5%vat if the house has been empty for 3 years.

windym_2

anitha wrote:

Hi

We are in the process of buying a house that has had no maintenance or building work done on it in 25 years. It is very dilapidated, puttee used to seal windows, walls cracked and otherwise very antiquated. Our builder has said that it would cost us £40000 to renovate including wiring, GCH, radiators, new fitted kitchen, adding a bathroom and updating current bathroom.

Am I correct in saying that although we are sourcing and paying for all items we cannot reclaim VAT ?

thanx

Anitha

From what you say you are NOT eligible to reclaim VAT.

BUT - You cannot normally make a refund scheme claim for work on a building that has previously been lived in. The exception to this is where, when you start your work, it has been at least 10 years since it was last lived in and following the work it is an eligible dwelling or residential building.

hth.