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Update to the VAT Do-It-Yourself Scheme

The government have today released a full list of eligible building materials and services on which DIY builders can claim back VAT in certain circumstances. Read on if you’re unfamiliar with the scheme.

What is the VAT DIY Scheme?
The objective of the scheme is to put a private individual, who is either building their own home, or undertaking a conversion of a non-residential dwelling on a do-it-yourself basis, in a comparable position as if they had purchased a property from a developer, As no VAT would be charged by the developer on these properties, this scheme allows you to reclaim the VAT incurred on certain goods and services when undertaking the work yourself.
What types of projects are eligible for the VAT DIY Scheme

  1. The construction of a new home from scratch
  2. The conversion of a former non-residential building into a private dwelling, for example, barn conversions
  3. The construction of a new building solely for a ‘relevant charitable purpose’ (see our previous article here) or ‘relevant residential purpose’
  4. The conversion of a former non-residential building for a ‘relevant charitable purpose’ or ‘relevant residential purpose’ (see our previous article here)

Who is eligible to make a claim for a VAT refund under the VAT DIY Scheme
Any individual who is embarking on an applicable project in a non-business capacity i.e. for their own use (or for charitable purposes – see above). This does not preclude individuals from commissioning various services on the project.

  • A DIY builder building a new home should use form VAT431NB (New Build)
  • A DIY builder converting a former non-residential building into a home (for example, barn conversions), should use form VAT431C (Conversion)

At what point in the project can I make a claim for a VAT refund
Only at the conclusion of the project, and then within three months of completion of the project.

An array of things, ranging from bird and bat boxes, curtain poles to saunas, subject to certain conditions of course!  You can view the full list here.

Please note:

Whilst we’ve tried to provide clarity in this article, the area of VAT does have its complications; as always there are a number of considerations here including planning permission criteria, or legal definition of ‘dwelling’ for example, and as such you should not rely solely on this article for advice.  If you require professional guidance we would recommend you contact us before the start of the project and instructing any services.

Get in touch to discuss your VAT queries