New online service for VAT DIY Housebuilder claim

HMRC have launched a new online service which allows DIY housebuilders the ability to recover VAT incurred on their build.  This should hopefully speed up the VAT reclaim process. Previously the claims had to be done manually and involved sending paperwork by post to HMRC.

For some background information, the DIY Housebuilder scheme tries to put a private individual who is building their own home in to a similar position to someone who has purchased a property from a developer. The scheme allows you to reclaim VAT that you incur on certain goods and services.

The scheme also applies to individuals converting a non-residential building into their own home, as well as those constructing a new charity building. The charity building must be used solely for a relevant charitable purpose or a relevant residential purpose.

HMRC have published new guidance regarding the scheme, which you can check by clicking on the link here.

Taxpayers who cannot use the online service can still make claims using paper forms. However, claims made on paper forms will take up to twice as long as those made using the online service and are less likely to be accepted without query. The appropriate paper forms are available just below the online service start buttons within the link noted above.

The time limit for making claims has also been extended for buildings completed on or after 5 December 2023. The time limit has been extended from three months after completion to six months after completion.

If you need any support completing your VAT DIY Housebuilder claim, please email our EQ Property & Construction team at property@eqaccountants.co.uk or contact one of our offices.

Alternatively, if you have any other questions regarding VAT, please email our EQ Taxperts.