ICAEW.com works better with JavaScript enabled.


DIY housebuilders scheme digitised – and time limit extended


Published: 14 Nov 2023 Update History

Individuals building their own home can submit their DIY housebuilders VAT refund claim digitally. The time limit for such a claim has also been extended to six months after completion of the build.

The VAT DIY housebuilders scheme gives DIY homebuilders the ability to reclaim the VAT they pay on building materials for any section of the build they undertake themselves. It also applies to individuals converting a non-residential building into their own home. 

Following the announcement at Spring Budget 2023, HMRC has confirmed the introduction of a digital claims process for the scheme. HMRC states that “this will make it easier for claimants to reclaim their VAT”. The digital process will be designed to minimise errors and help claimants get their claims right. The process will also be simplified by removing the requirement to submit invoices with the claim. 

The digital claims process should be easier for most taxpayers and will speed up HMRC’s processing of the claim. However, paper-based claims will remain as an option for those that cannot use the digital process. 

HMRC is also extending the time limit for DIY claims to six months after completion of the build. The previous time limit was three months after completion. HMRC expects that this will result in fewer omissions and errors as claimants will have more time to ensure they have gathered the necessary documents to complete the claim correctly. 

The digital process and other changes to the rules of the scheme come into effect in relation to claims made on or after 5 December 2023. More details regarding the digital process will be announced in due course. 

Further reading: 

The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.

Open AddCPD icon

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Log in to start using the AddCPD tool. Available only to ICAEW members.

Add this page to your CPD activity

Step 1 of 3
Download recorded
Download not recorded

Please download the related document if you wish to add this activity to your record

What time are you claiming for this activity?
Mandatory fields

Add this page to your CPD activity

Step 2 of 3
Mandatory field

Add activity to my record

Step 3 of 3
Mandatory field

Activity added

An error has occurred
Please try again

If the problem persists please contact our helpline on +44 (0)1908 248 250