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Where Taxpayers and Advisers Meet

DIY vat reclaim

Posts: 1
Joined: Fri Mar 22, 2019 3:45 pm

Re: DIY vat reclaim

Postby wellington » Fri Mar 22, 2019 7:07 pm

Completion Date....... I am in the same position. I am building (nearly finished) a 17,000 sq ft house, a true self build, in my 14th year and have put in a VAT claim before it is signed off by building control because it is taking so long to build. I feared I would be making the claim too early but HMRC advised I could use the VOA as completion certificate which was a temporary issue back in 2011 when we moved into part of the house. HMRC have refused the claim saying house was finished by Nov 2016 and my claim is late. I have a full 20 page surveyors report saying it is not finished according to the plans passed. My claim is £60k. They will not budge after 8 months of arguing. Any helpful thoughts?

Posts: 555
Joined: Wed Aug 06, 2008 3:09 pm

Re: DIY vat reclaim

Postby les35 » Mon Mar 25, 2019 10:19 am

I am running a similar case due at Tribunal this summer I think.
From conversations with other advisers, it seems clear that HMRC are applying a much stricter test as to when a dwelling is complete.
I'll look out for your decision, Dave.

Posts: 54
Joined: Mon Jul 20, 2009 4:37 pm

Re: DIY vat reclaim

Postby davebrownvat » Thu Apr 04, 2019 11:03 am

UPDATE: things have moved on since my last update. Many professionals have been talking to HMRC at quite a high level and two of my newer cases have been allowed (I have been advising another 6 or 7, at various stages of the reconsideration/appeal process - and I lodged two Tribunal appeals last week)

As regards my original case, it was at the Tribunal yesterday and I believe it went quite well. There were two main arguments, as well as the general unfairness of HMRC changing their policy. (They deny that, of course.)

1) The legislation states (loosely) that the claimant shall furnish "a Certificate of Completion, or other evidence such as HMRC might require. The judge raised the point in a slightly interesting way, that you might be able to rely on the Cert Of Completion (if you have one) and not need to bother with any other form of evidence. That fits in with HMRC guidance - 5 mentions of Comp Certificate, but only one mention of the other forms of evidence.

2) The amount of work that was carried out after HMRC's notional completion date. There was quite a bit, in this case.

If we win on point 1, it is likely to assist other claimants; if we win on point 2, it won't, as the general rule with Tribunals is that they are personal to the claimants and their individual circumstances. Each claimant will have slightly different, or vastly different circumstances, so it's certainly worth considering the Tribunal route

And if we lose, I reckon that the next step will be complaining to HMRC, as one of the biggest injustices here is that everyone affected has adhered to the to HMRC's guidance in the VAT 431C and 431NB. As well as going down the reconsideration/Tribunal route, I've also been advising clients to complain to HMRC (and their MP) in the first instance and if that fails, complain to the Adjudicator's Office. Being misled/misdirected by HMRC isn't really a Tribunal matter - they can only deal with the law.

I'll keep you posted.

Posts: 54
Joined: Mon Jul 20, 2009 4:37 pm

Re: DIY vat reclaim

Postby davebrownvat » Mon Apr 15, 2019 3:06 pm

Further update - we won at the Tribunal, however, this was 100% based on the precise circumstances of my clients situation - the amount of work left to do when she moved in. In that light, it might not be of a great deal of assistance to anyone else. Having said that, it is in the right direction and if you can demonstrate that there was a fair amount of work to be carried out before you got the Completion Certificate, then you might be in with a shout.

There was little mention in the decision about the legislation, but it might be worth trying that in your case, if there is not much outstanding work to be done, prior to Completion.

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