Building a new home or converting a property?
If you’re building a new home or converting a property into a place to live you’ll be pleased to hear there is a refund scheme that could allow you to reclaim the VAT.
Whether you do the work yourself or have it done for you, you may receive money back from some of the building materials and conversion services you use.
However be warned there’s strict criteria that you’ll have to meet first – and not everyone will qualify.
The scheme applies to the construction of self builds, finishing of buildings, conversions, communal buildings and charity buildings. Anyone that buys eligible goods for these projects is allowed to make a claim. However, it’s worth noting that you can’t claim on DIY building work if you are using the property for business purposes, for example if you’re the landlord of that property.
You can make a claim for both goods and services. So that’s most of your building materials from Jewson or other Property Investor Reward Club suppliers (anything for the structure of the house is included, so no paint or decorating materials for example). Plus any VAT claimed by an employed contractor.
If you purchase anything from abroad it’s good to know you can also claim back the VAT paid on building materials bought in any member state of the EU!
In terms of making a claim, you must wait until the work is finished according to the original plans. You must also make a claim within three months of completion, if you can’t, you must write to the HMRC to explain the reason for the delay. What’s more, you need to make sure you have all the right paperwork in place. This means obtaining VAT invoices for everything, and they need to be correct.
Finally, the HMRC will acknowledge receipt of your claim by letter and will ask any questions they have about your claim at the same time. All being well, you should then receive your refund within 30 banking days of them receiving your claim.
To find out more visit: http://www.hmrc.gov.uk/vat/sectors/consumers/new-home.htm
No matter how large of small your project is Jewson and Property Investor Reward Club have the expertise to be able to assist you.
PIRC is an exclusive membership club for property traders, investors and landlords which gives you immediate access to discounts from all the suppliers you need in your property business.
Benefit from EXCLUSIVE rates on everything from building materials to solicitors’ fees. You also earn cash back and rewards with every purchase at PIRC-Card.co.uk.