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Can I claim VAT back for HMO and decorations on BTL property?
Skag
Posts: 480 Forumite
I have two properties which need to get some work to comply with HMO regs, and also I am considering some redecoration.
The builder told me that he is VAT registered, hence he is going to charge more, but I might be able to claim VAT back.
The properties are in my name, and not in a company. Can I still claim VAT back on my self assessment?
The builder told me that he is VAT registered, hence he is going to charge more, but I might be able to claim VAT back.
The properties are in my name, and not in a company. Can I still claim VAT back on my self assessment?
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Comments
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Are you VAT registered? If not then you cannot claim anything. I would guess you are not, as I cannot imagine you make any supplies that you could charge VAT on if all you do is private rentals.
There used to be some schemes for self-builders and the like, but I don't think you are one of them either0 -
To claim VAT back you have to be VAT registered. It's as simple as that....
If you are not VAT registered, then no. If you are VAT registered, then yes.
Simples.
Since you are asking, I have to assume you are not VAT registered, else this is something you'd be doing already ... submitting VAT returns.0 -
That is correct, I am not VAT registered.
So, is it worth getting VAT registered just for that? I also pay VAT for the letting agent's fees.0 -
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That is correct, I am not VAT registered.
So, is it worth getting VAT registered just for that? I also pay VAT for the letting agent's fees.
Everyone pays VAT on goods or services which are VAT-taxable, and which are provided by VAT-registered businesses.
You can't VAT register JUST for 'that'. If you register as a VAT business, you're obliged to charge VAT on your goods or services, and can reclaim VAT spent on goods, services and fees paid for the business.
You'll have to complete a VAT return EVERY 3 months.
You'll have to pay VAT to HMRC every 3 months.0 -
some building work is zero rated for vat so individuals can claim it back, although this is for new builds and possibly substantial renovations such as converting buildings.
Converting a normal house into a hmo would be very unlikely to be covered by this0 -
Even if you were VAT registered, you cannot reclaim VAT on any of the expenses you have listed.
You can only reclaim VAT for expenses incurred in relation to a taxable supply. Rental income for a residential property is VAT exempt and therefore you have not made a taxable supply.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Some renovations attract a lower rate of VAT and all new builds are zero rated for VAT. You can reclaim on building materials bought at full VAT even if you are not VAT registered. You would make a one off claim to HMRC. However, if the build does attract a lower rate and you use a VAT registered builder, materials or labour has to be charged by them at the reduced rate. They do the reclaiming. You can never reclaim the VAT from HMRC in that case.
After me saying all of that, redecorating something does not sound like a job that is ever big enough to trigger any kind of discount anyway.Everything that is supposed to be in heaven is already here on earth.
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If you want to avoid paying VAT, maybe you should just employ a builder who is not VAT registered!0
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As answered above, but to add a little. You are not entitled to register for VAT if all you do is rent private houses/rooms - your supplies are exempt from VAT therefore you cannot register. If you have any commercial rentals you could register, but you still would only be able to claim back VAT on those properties.
The reason for this is because no one wants to pay a tax on rent or their mortgage, so the law exempts this from VAT0
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