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VAT: HMRC guidance on DIY Housebuilders scheme claims


Published: 17 May 2022 Update History

Guidance clarifies when subsequent claims might be accepted following a First-tier Tribunal decision.

The DIY Housebuilders scheme is designed to put private housebuilders in a similar position to residential property developers. It allows private persons to claim back VAT on the cost of building materials when constructing their own homes. Private housebuilders can normally only make a single claim within three months of completion of the building.

HMRC has clarified that, where it is agreed that a claim has been repaid in error, HMRC will accept a subsequent claim with evidence that the claim has been made within three months of completion. This follows the First-tier Tribunal decision in Andrew Ellis and Jane Bromley [2021] UKFTT 343 (TC), where two claims were submitted, but the building was not complete at the time of either claim.

The guidance also confirms that HMRC already allows (on a case by case basis) acceptance of supplementary claims for invoices and works carried out before the claim was submitted. For instance, where an invoice may have been left out in error or issued late by the contractor.

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