You can apply to HMRC for a VAT refund on building materials and services if you are building a new home, or converting a property into a home. In order to qualify the home must be separate and self-contained, be for you or your family to live or holiday in, and not be for business purposes (although you can use one room as a work from home office). Builders working on new buildings should zero rate their work anyway and you won’t pay any VAT on their services.
Where there is an existing dwelling on the site you will normally need to demolish the existing building, however it will count as a new build where a single facade is retained if that is a condition of the planning consent. You may also claim a refund for builders’ work on a conversion of non-residential building into a home, or a residential building that hasn’t been lived in for at least 10 years.
When you make your claim you must supply a copy of the planning permission, a full set of building plans, the invoices – including tenders or estimations if the invoice isn’t itemised, and proof the building work is finished. Please contact us if you need advice or assistance on this or any other VAT matters.
Tax Diary of Main Events
– Corporation tax for year to 30/9/15
– Returns of rent paid by agents to non-resident landlords and of tax deducted by tenants from rent paid direct to non-resident landlords for 2015/16.
– Forms P11D and P11D(b) for 2015/16 tax year, and where appropriate form P9D
– Form 42 – report of shares issued to employees and directors during 2015/16 tax year.
– PAYE & NIC deductions, and CIS return and tax, for month to 5/7/16 (due 22 July if you pay electronically); payment of Class 1A NICs for 2015/16 (22 July if you pay electronically)
– Second payment on account of self assessed income tax and national insurance for 2015/16
– Corporation tax for year to 31/10/15
– PAYE & NIC deductions, and CIS return and tax, for month to 5/8/16 (due 22 August if you pay electronically
– Corporation tax for year to 30/11/15
– PAYE & NIC deductions, and CIS return and tax, for month to 5/9/16 (due 22 September if you pay electronically)