Goods and services you can claim for under the VAT DIY Scheme (2022)

This list will help you identify the goods (building materials) and services which are eligible for a VAT refund. Services can only be claimed for conversions as any services to a new build property should be zero rated.

Goods and services A to C

A

Allowable Disallowable
Access chamber Abrasive paper
Access cover Aggregate tax and levy charge
Adaptors (plumbing) Air testing
Adhesive Amplifiers (sateillite system)
Aerials - TV Appliances - white goods (except Aga if it heats space and water)
Aga (only if it also heats space and water) Architectural Design and Fees
Aggregate Artificial grass
Air bricks Audio equipment (including any AV systems)
Air Conditioning Awnings
Alarm Systems
Architrave
Asbestos (as a material)
Asbestos Removal (conversions Only)

B

Allowable Disallowable
Balcony Barbed wire
Ballast Barbecue
Basins Bathroom cabinets (unless with plumbing for a sink fixed to the wall)
Bathroom furniture (units supporting basins and behind back to wall wcs only) Bathroom countertops
Bat and bird boxes (only if it is required as a condition in the Planning Permission) Batteries
Baths Bollards
Beams Bookcase
Bell box (for alarm) Boots
Bend connectors Bore Hole Testing, Inspection and Commissioning
Bidets Bore Hole Testing, Inspection and Commissioning
Blinds Bottle gas cylinders
Blinds fixed within windows (between panes of glass) Brackets for TV
Block paving Brick Bolster
Blocks Brush and broom handles (including Paint Brushes)
Boards BT Connection
Boilers Bucket
Bolts Building regulations fees
Bottle gully Built-In-Speakers
Bottle trap Bulbs
Breakfast bar
Breather paper
Bricks
Brushing wax
Burglar alarm
Butt hinge
Butterfly ties

C

Allowable Disallowable
Cables Caravans
Carcassing Carpets
Carriage (with materials) Cattle grids (only if it is a required as a condition in the Planning Permission and is a security feature)
Caulk CCTV systems (including video recording)
Cavity slab Cement mixer
Cavity trays Chisel
Ceiling roses Chlorinating water pipes and sample testing (this is a service of cleaning the pipes before the property comes into use. The service should be charged at the zero or reduced rate depending on the type of construction if undertaken by the plumbers as part of their services. It should be standard rate if undertaken by a separate specialist)
Cement Clocks
Chamber riser Clothes line
Chandeliers Clothing
Chicken wire (only if used as fencing) Coffee machine
Chimney extractor unit Coir matting
Chimney pots and caps Commissioning fee
Chimneys Computers
Chipboard Concrete pump hire (not including the supply of concrete)
Chippings Connection of alarm to fire or police department
Chrome baskets (fixed in bathroom) Consultancy (technical design fees)
Sill (window) Cookers (an Aga is allowable only if it also heats space and water)
Cistern Cotton chalkline
Cladding Curtains
Cleaning of building (builders clean services after all the work is undertaken except the decorating. The cleaning services should be charged at the zero or reduced rate depending on the type of construction)
Clock tower (only if the clock tower is shown on the approved plans - The clock itself is not claimable)
Coat and hat hooks
Compost
Concrete
Condensing boiler
Connector
Consumer unit
Cooker hood
Copper tube
Cornice
Countertop basins
Coupler
Coupling
Coursing bricks
Coving
Creosote
Crusher run
Curtain poles and rails

Goods and services D to F

D

Allowable Disallowable
Danish oil Deckchair (furniture)
Deckchair (wire spacer) Desk
Decking Diesel
Decorating materials Diggers (Allowable if hired with an operator or driver)
Delivery (If invoiced with materials) Digibox (freeview box or satellite)
Diffuser crystal (lighting) Discount charge
Dimmer switch Discs (cutting or grinding)
Discs for insulating wall ties Door entry systems (unless the DIY claim is for a flat)
Door entry system (only in flats) Door mats
Door frame Doorbell or door chime
Door furniture Drain inspections
Door knocker and cover Drawers (part of a wardrobe or freestanding)
Door locks, chains and latches Draw rope (for marking out straight lines)
Door stops Drill bits and accessories
Doors Dumpy bag
Double glazed units Dust masks
Downlighters DVD
DPC = Damp proof course
DPM = Damp proof membrane
Drainage
Ducted warm-air systems
Ducting
Dust extractors and filters

E

Allowable Disallowable
Elbow (plumbing) Electrical components of garage doors, gates and windows
Electric fire Electricity bills
Electric showers Electricity connection (see Utilities)
Electric windows Estate agent fees
Electricity connection (see Utilities) Extension leads
End feed Extension pole (decorating)
Engineering bricks
Expanding foam
Exclusion fencing
Extractor fan

F

Allowable Disallowable
Facing bricks Fablon (sticky back plastic)
Fascias Fabric (cloth)
Felt (roofing) Face mask
Fencing (permanently erected around boundary of dwelling) Fees (professional)
Fibre glass Fitted wardrobes (unless it meets conditions in VAT Notice 708 Section 13.5 2 If a fitted wardrobe is included in a DIY claim, photographic evidence of eligibility is required)
Finials Flueorescent tubes
Fire alarm and sprinkler system(in large open plan loft type apartments only, which have no internal dividing walls) Freestanding drawers
Fire safety equipment Freezers
Fire surrounds Fridge
Fireplace Fridge drawers
Fittings Fuel
Flex Furniture
Floor screed
Floor tiles
Floor varnish
Flooring materials (except carpets and carpet tiles)
Flue kit
Flue liner
Fluorescent fitting
Fluted wooden dowels
Foam
Frame fixings
Frame fixtures
Frame ties
Framing anchor
Fuses (a safety device that is designed to protect an electrical power system from the harmful effects of over-currents (currents higher than the normal operating current). If the fuses are part of eligible electrical systems (for example, lighting systems) then the fuses are eligible)

Goods and services G to I

G

Allowable Disallowable
Gaffer tape Garden furniture and ornaments
Galvanised wire Garden hose
Garage doors (electrical components are not allowable) Garden hose reel
Gas connection - See Utilities Gas bills
Gas fire Gas connection See Utilities
Gas hinges (only if attached to a door or kitchen cupboards) Gas heater hire
Gates (electrical components are not allowable) Glass cleaners
Generator (only if it is the permanent provider of electricity for the dwelling) Glass papers
Geothermal heat pump Glass shelves (bathrooms)
Girder truss shoe Gloves
Glass Grass (artificial)
Glass blocks Greenhouse
Glazing GU10 (bulbs)
Granite GW10 (bulbs)
Grass (turf) Gym equipment
Grass seed
Grate and grating
Gravel
Grit
Ground heat exchanger and pump
Grout
Gully
Guttering
Gypsum

H

Allowable Disallowable
Handles Hammer
Hardcore Hardpoint (saw)
Hardwax oil Haulage charge (when invoiced separately. Transport charges included with materials are allowable)
Hardwood HDMI cable
Heating systems Helmets
Heavy duty strap Hi-Fi systems
Hessian sheeting (for concrete curing) Hire charges
Hinges Hobs
Hockey stick (only as a type of wood)
Hoists - dumbwaiter
Hot tub (only if located inside the dwelling)
House name and number plaques
Hydroptherapy pools (only if located inside the dwelling)

I

Allowable Disallowable
Immersion heaters, boilers,hot and cold water tanks Inspections
Inspection chambers Integro filter and respirator
Insulation Intergrated appliances (installation service is allowed if shown seperately)
Insulation boards
Intercom system - (only as a door entry system for a block of flats)
Intelligent lighting systems (only if operating lighting, heating, water, ventilation and any other building materials. Systems operating audio and TV etc are not allowable. Control pads that are wired to the wall are only allowable if the system is allowable. Remote controls are not allowable)
Ironmongery
Isowool general purpose roll

Goods and services J to L

J

Allowable Disallowable
Jacuzzi (only if located inside the dwelling) JCB without an operator or driver
Jiffy hanger (wood) Jigsaw
Joint filler
Joist hanger
Junction box
JCB (for example, a digger or forklift) only if it is hired with an operator or driver

K

Allowable Disallowable
Karndean flooring Kitchen Appliances (white goods, except cooker hoods and certain types of Aga)
Kerbstone
Kit houses (timber frames)
Kitchen cupboards (fitted kitchen only)
Kitchen sinks
Kitchen work tops and breakfast bars
Knocker (for door)

L

Allowable Disallowable
Laminate flooring and underlay Ladders (except loft ladder)
Latches Lamp shades - if removable
Lead Lamps (bulbs)
Lead flashing Land registry fee
Letter boxes Landscape and garden equipment
Letter plate and tidy Legal fees
Lifts Lightbulbs
Light fittings Lighting systems (see Intelligent lighting)
Lightning conductors Lorry
Lime
Limestone
Liner
Lining paper
Linolium
Linseed oil
Lintel
Load charged (with materials)
Locks
Loft hatch
Loft insulation
Loft ladders

Goods and services M to O

M

Allowable Disallowable
Man hole covers Machine hire (without an operator or driver)
Manure Machinery repairs
Marble Masking tape
MDF Masonry drill
Membrane Measuring tape
Meter cupboards Mercury spot (test mercury in soil)
Mineral wool Microwave
Mirrored doors (mirrored doors on a wardrobe that meet the conditions of VAT Notice 708 Section 13.5.2 are also acceptable). Muck away (also spoils or tip away)
Mirrors (if firmly affixed to the dwelling)
Mortar
Mosaic tiles
Moulding

N

Allowable Disallowable
Nails Nail gun
Nuts Nylon brushes

O

Allowable Disallowable
Occupancy switch (movement detector switch which enables connected lights to switch on automatically when movement is detected and stays on while the room is occupied) Oil (machinery)
Ogee (wood) Ovens
Oil fired boilers
Oil tank
Outside lights

Goods and services P to R

P

Allowable Disallowable
Padstones Paint brushes, trays and rollers
Paint Pencils
Pan connectors Pendulum jigsaw
Parquet flooring Petrol
Patination oil Photocopies and plans
Pattress Pipecutters
Paving stones Pitfall traps (animal traps)
Pea gravel Planning application fees
Pedestal for bathroom sink Plants and trees (if the Planning Permission does not have a Landscaping condition)
Pendant light fitting Plumb bob and line set
Pipe clips Ponds
Pipe coil Portable toilets
Pipe coverings Prefabricated furniture
Pipe insert Professional fees and management fees
Pipe shoe Propane gas cylinder
Pipe stiffener or pipe support
Pipe tee
Pipes
Plants and trees (only if there is an approved landscaping scheme on the Planning Permission)
Plaster
Plaster board
Plasterers tape
Plastic push in clips
Plasticiser
Plinth
Plinth stretcher
Plumbing materials and fittings
Plywood
Poles
Polythene - DPC or DPM damp proof coarse and membrane
Pond liner (if used for roofing)
Post boxes (if attached to either the dwelling or boundary wall)
Posts (fencing)
Power points
Pumps
PVA - Glue

Q

Allowable Disallowable
Quoins
Quooker taps

R

Allowable Disallowable
Rabbit wire (only if used for fencing. If used in the construction of an animal enclosure it is not allowable) Rawlplug flat bit - Drill bit
Radiator key Red diesel
Radiators and controls Remote controls and motors for automation (garage doors and lighting)
Rafter tray (roof) Respirator (dust mask)
Rafters Retractable fabric awnings
Railings Retractable washing line
Rawl plugs Roller
Readymix Roller blinds
Reducer Waste Roller sleeves and trays (for painting)
Reinforcement Mesh Rugs
Remote sensor - underfloor heating
Resin
Restraint straps
Roof slates
Roof trusses
Roof Vent
Roofing felt or membrane
Room therostat
Rope (dependant upon the use - provide additional information if claiming for this material)

Goods and services S to U

S

Allowable Disallowable
Sand Saw
Sandstone Sand paper
Sanitary ware Sanding discs
Satellite dishes Scaffolding
Saunas (only if located inside the dwelling) Screwdrivers
Sawn Shed
Sawn carcassing Shelves
Screed Shovel
Screw covers Site fencing (temporary - only allowable if used to provide site security during construction works)
Screws Site lighting (temporary)
Seal Skips
Sealant Spade
Security lights (permanent) Speakers
Self adhesive scrim (tape) Spirit Level
Septic tanks Spreader
Service boxes Stables
Sewer connection
Shutters

T

Allowable Disallowable
Tape Tarpaulin
Taps Telephones
Tarmac Televisions (including wall mounted fixtures)
Tee Temporary fencing (only allowable if used to provide site security during construction works)
Telephone sockets and cables Temporary signposts
Thermostat Tile cutters
Tile adhesive Toilet hire
Tile trim Tools
Tiles Traffic lights
Timber Transport charge (when invoiced separately. Transport charges included with materials are allowable)
Timber decking (for a patio only) Trees (iIf the Planning Permission does not have a Landscaping condition)
Timber frame kits Trestles
Toilet Tripod lights
Toilet roll holders (fixed) Trowels
Top soil Turf (artificial)
Towel rails (fixed) TV brackets
Transformer (if included with other items)
Trap bottle (plumbing)
Trees (only if there is an approved landscaping scheme on the Planning Permission)
Trim
Trunking
Trusses
Turf
TV aerials
TV cable and sockets

U

Allowable Disallowable
Underfloor heating Umbrella (garden furniture)
Underground pipes Underlay (carpets)
Underlay (dependant upon the material it is used in conjunction with. If the main flooring material is not allowable, such as carpet, the underlay is also not allowable) Utility bills
Underlay (roofing)
Upstands
Utilities (for qualifying conversions, connections to Gas, Electricity and Water supplies are reduced rated if they take place within the site of the building. Works offsite are chargeable at the standard rate but are eligible to be claimed via the DIY scheme. For new build and replacement dwellings, connections to Gas, Electricity and Water supplies are zero-rated)

Goods and services V to Z

V

Allowable Disallowable
Vacuum cleaners (only if integrated into the dwelling. Separate appliances are not allowable) Van
Valves Vehicle maintenance
Varnish
Velux flashing
Velux windows
Veneer
Ventilation equipment
Vents
Vinyl flooring
Visqueen

W

Allowable Disallowable
Wall connector Warming drawers
Wall lights Washing machines
Wall pan (toilet) Water softener tablets
Wall plates Watts (bulbs - tungsten halogen lamp)
Wall plugs WD40
Wall ties Weather dials
Wallboard Weed killer
Wallpaper Weighbridge ticket
Wardon call systems White goods
Wardrobes (only if fitted as per VAT notice 708 section 13.5 - If included in a DIY claim, photographic evidence of eligibilty will be required) White spirit
Wash basin Wine cooler (electric)
Washers
Washing machine tap
Washing machine trap
Waste disposal units (only if the DIY claim is for a flat or apartment)
Waste fittings
Waste systems
Water connection (see Utilities)
Water softeners (only if plumbed-in)
Water tanks
Water turbines
Waterwell pools (only if located inside the dwelling)
WCs - Toilet
Whirlpool bath
Wier nails
Wind turbines
Window flashing
Window frames
Windows
Wine rack built into kitchen units
Wire mesh
Wiring (including internal wiring fixtures for computer, phone and TV)
Wood
Wood burning stove
Wood preserver
Wood screws
Woodfiller
Woodworm treatment

X

No items

Y

No Items

(Video) Don't Make This Mistake with VAT - You'll Save Thousands

Z

No items

(Video) VAT Reclaims for DIY Builders | Topical Tax Tips with Bernard Critchley

Published 29 August 2019
Last updated 11 October 2021 +show all updates

  1. With effect from 5 October 2020 HMRC policy is that manual window blinds and shutters are allowable building materials.

    (Video) BiteSize Tax- VAT for the Property Entrepreneur

  2. First published.

(Video) VAT and Residential Property
Contents
(Video) 4 Experts' Tips for Successful Amazon Expansion in Europe!

Self builders can often overlook the fact that they can reclaim VAT on a new build or conversion project. Here’s how to navigate the process and which projects are eligible

The DIY Housebuilders Scheme ( Notice VAT431NB (opens in new tab) for new builds and Notice VAT431C (opens in new tab) for conversions ) allows you to reclaim VAT from HMRC that you have paid out for your project if you are:. You can recover all of the VAT incurred on eligible materials via the scheme The supply of labour only or the joint supply of labour and materials should be at the zero rate (0%) for new builds and at the reduced rate, currently 5%, for conversions and renovations that bring a dwelling that has not been lived in for 10 years back into use as a dwelling.. Converting a non-residential building (opens in new tab) , for example, a barn, old church, business premises, into a new dwelling Renovations that bring a dwelling that has not been lived in for 10 years back into use as a dwelling If the new build or conversion is a holiday home (opens in new tab) for you and your family’s personal use Landscaping and outside works covered by your planning permission.. Extensions and self-contained accommodation (for example, a granny annexe ) that do not create an independent dwelling in their own right, unless built at the same time as part of a new dwelling Separate buildings that are part of your planning permission, apart from a garage — for example, a garden store or a detached swimming pool building Refurbishments of existing dwellings (unless empty for 10 years) A new dwelling constructed for any business use , such as a holiday rental or buy to let. All materials normally incorporated in a new dwelling — all construction materials, for example, concrete, blocks, bricks, insulation, sand, cement, plaster, timber, roofing, stairs, windows, guttering, doors, paint, etc Electrical and plumbing materials Fitted furniture such as kitchen units and worktops Extractor fans Fittings , such as light fittings, wooden floor systems, linoleum, floor tiles, door furniture, fireplaces and fires, fixed towel rails, mirrors, solar panels, boilers, sewage treatment plants, TV aerials, curtain poles Swimming pools and saunas inside or linked to the new dwelling Delivery charge included on an invoice for materials. Renovations to dwellings empty for two years or more are eligible for the reduced rate of VAT of 5% via a VAT-registered contractor Works involving a net change in the number of dwelling units are also eligible for the reduced rate of VAT of 5%.. The VAT incurred on invoices from VAT-registered suppliers in the EU can be claimed too, as long as the invoice includes the relevant information (including their VAT number).. Ensure your project is eligible Ensure that you are charged the correct rates of VAT on all invoices Don’t ask a non-VAT registered contractor to supply materials, as you won’t be able to reclaim VAT on those materials Ensure that you are charged the zero rate of VAT on the supply of labour only and the joint supply of labour and materials on new builds Obtain valid VAT invoices as you go and keep them safely together Keep all of your relevant invoices together Ensure your claim is made within three months of completion Engage the services of a professional to ensure you recover the maximum amount of VAT and so minimise its impact on your budget

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Services can only be claimed for conversions as any services to a new build property should be zero rated.. AllowableDisallowableAccess chamberAbrasive paperAccess coverAggregate tax and levy chargeAdaptors (plumbing)Air testingAdhesiveAmplifiers (sateillite system)Aerials - TVAppliances - white goods (except Aga if it heats space and water)Aga (only if it also heats space and water)Architectural Design and FeesAggregateArtificial grassAir bricksAudio equipment (including any AV systems)Air ConditioningAwningsAlarm SystemsArchitraveAsbestos (as a material)Asbestos Removal (conversions Only) AllowableDisallowableBalconyBarbed wireBallastBarbecueBasinsBathroom cabinets (unless with plumbing for a sink fixed to the wall)Bathroom furniture (units supporting basins and behind back to wall wcs only)Bathroom countertopsBat and bird boxes (only if it is required as a condition in the Planning Permission)BatteriesBathsBollardsBeamsBookcaseBell box (for alarm)BootsBend connectorsBore Hole Testing, Inspection and CommissioningBidetsBore Hole Testing, Inspection and CommissioningBlindsBottle gas cylindersBlinds fixed within windows (between panes of glass)Brackets for TVBlock pavingBrick BolsterBlocksBrush and broom handles (including Paint Brushes)BoardsBT ConnectionBoilersBucketBoltsBuilding regulations feesBottle gullyBuilt-In-SpeakersBottle trapBulbsBreakfast barBreather paperBricksBrushing waxBurglar alarmButt hingeButterfly ties AllowableDisallowableCablesCaravansCarcassingCarpetsCarriage (with materials)Cattle grids (only if it is a required as a condition in the Planning Permission and is a security feature)CaulkCCTV systems (including video recording)Cavity slabCement mixerCavity traysChiselCeiling rosesChlorinating water pipes and sample testing (this is a service of cleaning the pipes before the property comes into use.. The service should be charged at the zero or reduced rate depending on the type of construction if undertaken by the plumbers as part of their services.. It should be standard rate if undertaken by a separate specialist)CementClocksChamber riserClothes lineChandeliersClothingChicken wire (only if used as fencing)Coffee machineChimney extractor unitCoir mattingChimney pots and capsCommissioning feeChimneysComputersChipboardConcrete pump hire (not including the supply of concrete)ChippingsConnection of alarm to fire or police departmentChrome baskets (fixed in bathroom)Consultancy (technical design fees)Sill (window)Cookers (an Aga is allowable only if it also heats space and water)CisternCotton chalklineCladdingCurtainsCleaning of building (builders clean services after all the work is undertaken except the decorating.. The cleaning services should be charged at the zero or reduced rate depending on the type of construction)Clock tower (only if the clock tower is shown on the approved plans - The clock itself is not claimable)Coat and hat hooksCompostConcreteCondensing boilerConnectorConsumer unitCooker hoodCopper tubeCorniceCountertop basinsCouplerCouplingCoursing bricksCovingCreosoteCrusher runCurtain poles and rails AllowableDisallowableDanish oilDeckchair (furniture)Deckchair (wire spacer)DeskDeckingDieselDecorating materialsDiggers (Allowable if hired with an operator or driver)Delivery (If invoiced with materials)Digibox (freeview box or satellite)Diffuser crystal (lighting)Discount chargeDimmer switchDiscs (cutting or grinding)Discs for insulating wall tiesDoor entry systems (unless the DIY claim is for a flat)Door entry system (only in flats)Door matsDoor frameDoorbell or door chimeDoor furnitureDrain inspectionsDoor knocker and coverDrawers (part of a wardrobe or freestanding)Door locks, chains and latchesDraw rope (for marking out straight lines)Door stopsDrill bits and accessoriesDoorsDumpy bagDouble glazed unitsDust masksDownlightersDVDDPC = Damp proof courseDPM = Damp proof membraneDrainageDucted warm-air systemsDuctingDust extractors and filters AllowableDisallowableElbow (plumbing)Electrical components of garage doors, gates and windowsElectric fireElectricity billsElectric showersElectricity connection (see Utilities)Electric windowsEstate agent feesElectricity connection (see Utilities)Extension leadsEnd feedExtension pole (decorating)Engineering bricksExpanding foamExclusion fencingExtractor fan AllowableDisallowableFacing bricksFablon (sticky back plastic)FasciasFabric (cloth)Felt (roofing)Face maskFencing (permanently erected around boundary of dwelling)Fees (professional)Fibre glassFitted wardrobes (unless it meets conditions in VAT Notice 708 Section 13.5 2 If a fitted wardrobe is included in a DIY claim, photographic evidence of eligibility is required)FinialsFlueorescent tubesFire alarm and sprinkler system(in large open plan loft type apartments only, which have no internal dividing walls)Freestanding drawersFire safety equipmentFreezersFire surroundsFridgeFireplaceFridge drawersFittingsFuelFlexFurnitureFloor screedFloor tilesFloor varnishFlooring materials (except carpets and carpet tiles)Flue kitFlue linerFluorescent fittingFluted wooden dowelsFoamFrame fixingsFrame fixturesFrame tiesFraming anchorFuses (a safety device that is designed to protect an electrical power system from the harmful effects of over-currents (currents higher than the normal operating current).. Systems operating audio and TV etc are not allowable.. Control pads that are wired to the wall are only allowable if the system is allowable.. Remote controls are not allowable)IronmongeryIsowool general purpose roll AllowableDisallowableJacuzzi (only if located inside the dwelling)JCB without an operator or driverJiffy hanger (wood)JigsawJoint fillerJoist hangerJunction boxJCB (for example, a digger or forklift) only if it is hired with an operator or driver AllowableDisallowableKarndean flooringKitchen Appliances (white goods, except cooker hoods and certain types of Aga)KerbstoneKit houses (timber frames)Kitchen cupboards (fitted kitchen only)Kitchen sinksKitchen work tops and breakfast barsKnocker (for door) AllowableDisallowableLaminate flooring and underlayLadders (except loft ladder)LatchesLamp shades - if removableLeadLamps (bulbs)Lead flashingLand registry feeLetter boxesLandscape and garden equipmentLetter plate and tidyLegal feesLiftsLightbulbsLight fittingsLighting systems (see Intelligent lighting)Lightning conductorsLorryLimeLimestoneLinerLining paperLinoliumLinseed oilLintelLoad charged (with materials)LocksLoft hatchLoft insulationLoft ladders AllowableDisallowableMan hole coversMachine hire (without an operator or driver)ManureMachinery repairsMarbleMasking tapeMDFMasonry drillMembraneMeasuring tapeMeter cupboardsMercury spot (test mercury in soil)Mineral woolMicrowaveMirrored doors (mirrored doors on a wardrobe that meet the conditions of VAT Notice 708 Section 13.5.2 are also acceptable).Muck away (also spoils or tip away)Mirrors (if firmly affixed to the dwelling)MortarMosaic tilesMoulding AllowableDisallowableNailsNail gunNutsNylon brushes AllowableDisallowableOccupancy switch (movement detector switch which enables connected lights to switch on automatically when movement is detected and stays on while the room is occupied)Oil (machinery)Ogee (wood)OvensOil fired boilersOil tankOutside lights AllowableDisallowablePadstonesPaint brushes, trays and rollersPaintPencilsPan connectorsPendulum jigsawParquet flooringPetrolPatination oilPhotocopies and plansPattressPipecuttersPaving stonesPitfall traps (animal traps)Pea gravelPlanning application feesPedestal for bathroom sinkPlants and trees (if the Planning Permission does not have a Landscaping condition)Pendant light fittingPlumb bob and line setPipe clipsPondsPipe coilPortable toiletsPipe coveringsPrefabricated furniturePipe insertProfessional fees and management feesPipe shoePropane gas cylinderPipe stiffener or pipe supportPipe teePipesPlants and trees (only if there is an approved landscaping scheme on the Planning Permission)PlasterPlaster boardPlasterers tapePlastic push in clipsPlasticiserPlinthPlinth stretcherPlumbing materials and fittingsPlywoodPolesPolythene - DPC or DPM damp proof coarse and membranePond liner (if used for roofing)Post boxes (if attached to either the dwelling or boundary wall)Posts (fencing)Power pointsPumpsPVA - Glue AllowableDisallowableQuoinsQuooker taps AllowableDisallowableRabbit wire (only if used for fencing.. If used in the construction of an animal enclosure it is not allowable)Rawlplug flat bit - Drill bitRadiator keyRed dieselRadiators and controlsRemote controls and motors for automation (garage doors and lighting)Rafter tray (roof)Respirator (dust mask)RaftersRetractable fabric awningsRailingsRetractable washing lineRawl plugsRollerReadymixRoller blindsReducer WasteRoller sleeves and trays (for painting)Reinforcement MeshRugsRemote sensor - underfloor heatingResinRestraint strapsRoof slatesRoof trussesRoof VentRoofing felt or membraneRoom therostatRope (dependant upon the use - provide additional information if claiming for this material) AllowableDisallowableSandSawSandstoneSand paperSanitary wareSanding discsSatellite dishesScaffoldingSaunas (only if located inside the dwelling)ScrewdriversSawnShedSawn carcassingShelvesScreedShovelScrew coversSite fencing (temporary - only allowable if used to provide site security during construction works)ScrewsSite lighting (temporary)SealSkipsSealantSpadeSecurity lights (permanent)SpeakersSelf adhesive scrim (tape)Spirit LevelSeptic tanksSpreaderService boxesStablesSewer connectionShutters AllowableDisallowableTapeTarpaulinTapsTelephonesTarmacTelevisions (including wall mounted fixtures)TeeTemporary fencing (only allowable if used to provide site security during construction works)Telephone sockets and cablesTemporary signpostsThermostatTile cuttersTile adhesiveToilet hireTile trimToolsTilesTraffic lightsTimberTransport charge (when invoiced separately.. Transport charges included with materials are allowable)Timber decking (for a patio only)Trees (iIf the Planning Permission does not have a Landscaping condition)Timber frame kitsTrestlesToiletTripod lightsToilet roll holders (fixed)TrowelsTop soilTurf (artificial)Towel rails (fixed)TV bracketsTransformer (if included with other items)Trap bottle (plumbing)Trees (only if there is an approved landscaping scheme on the Planning Permission)TrimTrunkingTrussesTurfTV aerialsTV cable and sockets AllowableDisallowableUnderfloor heatingUmbrella (garden furniture)Underground pipesUnderlay (carpets)Underlay (dependant upon the material it is used in conjunction with.. If the main flooring material is not allowable, such as carpet, the underlay is also not allowable)Utility billsUnderlay (roofing)UpstandsUtilities (for qualifying conversions, connections to Gas, Electricity and Water supplies are reduced rated if they take place within the site of the building.. Separate appliances are not allowable)VanValvesVehicle maintenanceVarnishVelux flashingVelux windowsVeneerVentilation equipmentVentsVinyl flooringVisqueen AllowableDisallowableWall connectorWarming drawersWall lightsWashing machinesWall pan (toilet)Water softener tabletsWall platesWatts (bulbs - tungsten halogen lamp)Wall plugsWD40Wall tiesWeather dialsWallboardWeed killerWallpaperWeighbridge ticketWardon call systemsWhite goodsWardrobes (only if fitted as per VAT notice 708 section 13.5 - If included in a DIY claim, photographic evidence of eligibilty will be required)White spiritWash basinWine cooler (electric)WashersWashing machine tapWashing machine trapWaste disposal units (only if the DIY claim is for a flat or apartment)Waste fittingsWaste systemsWater connection (see Utilities)Water softeners (only if plumbed-in)Water tanksWater turbinesWaterwell pools (only if located inside the dwelling)WCs - ToiletWhirlpool bathWier nailsWind turbinesWindow flashingWindow framesWindowsWine rack built into kitchen unitsWire meshWiring (including internal wiring fixtures for computer, phone and TV)WoodWood burning stoveWood preserverWood screwsWoodfillerWoodworm treatment Published 29 August 2019. Last updated 11 October 2021 + show all updates 11 October 2021 With effect from 5 October 2020 HMRC policy is that manual window blinds and shutters are allowable building materials.. 29 August 2019

In this project we give you all the information you need on how to reclaim self build VAT for money spent on building materials

If they are out of time, they are very unlikely to refund you any VAT paid (since the HMRC will not refund them either).. You cannot claim for any other building other than the dwelling itself.. Obviously you cannot claim for VAT that you have not paid, such as for any materials or services that have a zero VAT rating.Organisation is the Key to Making a Successful Self-build VAT Refund Claim – Image courtesy of dailymail.co.uk. Part D – Details of goods for which you will be claiming back VAT (Where VAT have been shown separately on the invoice) Part E – Details of goods for which you will be claiming back VAT (Where VAT has not been shown and you will have to calculate it). Remember that you can only claim for the building materials, as the (eligible) services should already have been zero rated so there will not be any VAT to reclaim.. You can only make one claim – so include everything It must be made within 3 months of completion of your dwelling The claim can only be for a home for your use, or a relative of yours You can only claim for materials and not services.. Make sure that if you should be charged VAT at the zero rate by your contractor that they are doing so You reclaim should include the following: Form 431NB (downloaded on the above links) on a new selfbuild project (Form 431C is for conversions, again, downloaded on the links availabel above) Planning Permission approvals – including amendments and plans Proof of completion – usually completion certificate, but other proof is possible Original Invoices and Bills You bank details – so you can be repaid

Self builders can often overlook the fact that they can reclaim VAT on a new build or conversion project. Here’s how to navigate the process and which projects are eligible

You can recover all of the VAT incurred on eligible materials via the scheme The supply of labour only or the joint supply of labour and materials should be at the zero rate (0%) for new builds and at the reduced rate, currently 5%, for conversions and renovations that bring a dwelling that has not been lived in for 10 years back into use as a dwelling.. Converting a non-residential building (opens in new tab) , for example, a barn, old church, business premises, into a new dwelling Renovations that bring a dwelling that has not been lived in for 10 years back into use as a dwelling If the new build or conversion is a holiday home (opens in new tab) for you and your family’s personal use Landscaping and outside works covered by your planning permission.. Extensions and self-contained accommodation (for example, a granny annexe ) that do not create an independent dwelling in their own right, unless built at the same time as part of a new dwelling Separate buildings that are part of your planning permission, apart from a garage — for example, a garden store or a detached swimming pool building Refurbishments of existing dwellings (unless empty for 10 years) A new dwelling constructed for any business use , such as a holiday rental or buy to let. All materials normally incorporated in a new dwelling — all construction materials, for example, concrete, blocks, bricks, insulation, sand, cement, plaster, timber, roofing, stairs, windows, guttering, doors, paint, etc Electrical and plumbing materials Fitted furniture such as kitchen units and worktops Extractor fans Fittings , such as light fittings, wooden floor systems, linoleum, floor tiles, door furniture, fireplaces and fires, fixed towel rails, mirrors, solar panels, boilers, sewage treatment plants, TV aerials, curtain poles Swimming pools and saunas inside or linked to the new dwelling Delivery charge included on an invoice for materials. Renovations to dwellings empty for two years or more are eligible for the reduced rate of VAT of 5% via a VAT-registered contractor Works involving a net change in the number of dwelling units are also eligible for the reduced rate of VAT of 5%.. The VAT incurred on invoices from VAT-registered suppliers in the EU can be claimed too, as long as the invoice includes the relevant information (including their VAT number).. Ensure your project is eligible Ensure that you are charged the correct rates of VAT on all invoices Don’t ask a non-VAT registered contractor to supply materials, as you won’t be able to reclaim VAT on those materials Ensure that you are charged the zero rate of VAT on the supply of labour only and the joint supply of labour and materials on new builds Obtain valid VAT invoices as you go and keep them safely together Keep all of your relevant invoices together Ensure your claim is made within three months of completion Engage the services of a professional to ensure you recover the maximum amount of VAT and so minimise its impact on your budget

Landscaping, trees, plants etc - claim this VAT under the DIY refund scheme?

Under the rules, the zero-rate or DIY claim can only apply to the extent that the services and goods. used in the course of those services that are "closely connected" to the construction of the building. itself.. 133. HMRC accept that some landscaping is "closely connected" to the new construction, which means. that certain garden materials and plants qualify as "building materials".. This normally means that the contractor can usually only zero-rate part of the cost of the supply and installation of the goods and DIY developers can only claim VAT on limited goods.. As with any. other "mixed" supply, if the contractor doesn't identify goods and services that are zero-rated, then. the whole of the supply is liable to the standard rate and DIY claimants will not be able to claim any. of the VAT..  in either situation, the planting of trees, plants and shrubs is only regarded as "closely.  anything outside that area is not "building materials", so the goods and the services are both. standard rated.. Unfortunately, the reduced rate and DIY VAT claims for work done on gardens in the course of. renovations or conversions are less generous than the reliefs for new homes.. However topsoil, grass seed, turf, plants and trees planted close to the property qualify as "building. materials" subject to the same restriction planning restriction as those planted in the course of. construction of new homes.. However, these items are on the list of. "building materials" so my initial view is that HMRC may accept that, subject to the planning. condition, the reduced rate could apply to other plants, trees, turf etc that are planted in the. "immediate site" of the property..  Qualifying conversions and renovations: The supply of turf, topsoil, grass seed, plants and trees. may qualify for the reduced rate, subject to the same planning restriction as new construction. above and my own reservations mentioned above.. Any other plants, trees etc and any. landscaping services are standard rated.. VAT cannot be claimed on any gardening/landscaping services.. However, VAT cannot be claimed on any. related gardening/landscaping services.

The second-hand good scheme is one of the VAT accounting schemes made available by HMRC to help businesses in the UK. Find out about the rules of the VAT margin scheme, which businesses are eligible to join the scheme along with the benefits of doing so.

The second-hand good scheme is one of the VAT accounting schemes made available by HMRC to help businesses in the UK.. There is VAT on second-hand goods if the seller is VAT registered.. This rule applies to businesses that sell second-hand goods.. Businesses using the standard VAT scheme, currently 20%, in general, will reclaim VAT on anything they buy and add VAT to everything they sell.. If a business sells to other VAT registered businesses, then this is fine because VAT is not a cost to them.. However, some second-hand goods businesses often buy and sell from businesses that are not VAT registered or to consumers.. The VAT margin scheme for second-hand goods lets a business pay VAT at 16.67% (one-sixth) of the difference between the price they pay for an item and what they sell that item for.. You buy a watch for £1,500 from an individual (not VAT registered) and then sell it for £2,000 to another individual (also not VAT registered).. Using the margin scheme, you will pay VAT on the difference between you bought & sold the watch at, £500.. You’ll need to decide at the time of each sale whether you are going to apply to VAT Margin Scheme or standard scheme since you:. The VAT Second Hand Margin Scheme applies to any sales and purchases that meet the criteria of the scheme.. Say you buy something and pay for work to be carried out on it before you re-sell it.. The VAT you pay will be based on the difference between the original cost of the item and the amount you sell it for, you will need to exclude any work you have done on it.. Purchase Price means the amount you paid for the item including any incidental costs you have been charged such as postage and packaging.. Under the margin scheme you must work out the margin on each and every sale, whereas with the margin scheme you add up all eligible purchases and sales on a total basis quarter by quarter and take 1/6th of the total difference; With the Global Scheme you can include items on which you make a loss on whereas with the second-hand margin scheme you cannot set the loss of one item against the profit of another; You cannot use the global accounting scheme for any individual item that you purchase for over £500 whereas there is no limit for the second-hand margin schemes.

Mar 19, 2022 | [Ultimate 2022 VAT Guide] What is VAT, £85k VAT threshold, When to register, How to register, advantages vs disadvantages, Flat Rate vs Standard Rate.

This is because, in addition to the normal way of paying VAT (known as the Standard Rate Scheme), HMRC also offers the Flat Rate Scheme , the Cash Accounting Scheme and the Annual Accounting Scheme for small businesses with turnover under a certain amount.. After you've registered for VAT (more below) then you'll need to file your VAT return and pay VAT 1 month and 7 days after the end of your VAT quarter .. With quarterly VAT filing, this means that you'll need to make sure you're on top of your accounting admin at the end of each VAT quarter end to ensure you file and pay the right amount of VAT.. Business name, address and VAT registration number Any VAT accounting schemes you use The VAT on goods and services you supply, for example everything you sell, lease, transfer or hire out (supplies made) The VAT on goods and services you receive, for example everything you buy, lease, rent or hire (supplies received) Adjustments you make to a return The ‘time of supply’ and ‘value of supply’ (value excluding VAT) for everything you buy and sell The rate of VAT charged on goods and services you supply Reverse charge transactions Total daily gross takings (if you use a retail scheme ) Items you can reclaim VAT on if you use the Flat Rate Scheme Total sales and the VAT on those sales (if you trade in gold and use the Gold Accounting Scheme). You're required to submit a VAT return, and make payments a month and seven days after the end of a VAT period.. Rather than pay out the difference between the VAT you've charged to your clients and the VAT on your purchases, you'll pay HMRC a fixed rate of VAT.

Many businesses know that VAT can be claimed on many items. But what about these? Read on and make sure you are claiming back!

The expenses that are claimed, therefore have to be legitimate business expenses first then the VAT can be claimed.. Going out for a meal with clients is called ‘entertainment’ and as such, you can claim it as a business expense, but you cannot claim the VAT on it.. Parking fees, particularly fees that are paid, while working, that have VAT charged on them (in other words Tax Invoice should appear, somewhere on the receipt, and yes you have to have a receipt to claim the VAT back), can be claimed back.. Obviously, monies that are paid out to the ‘car guards’ cannot have the VAT claimed for, but you can, of course, claim them as a business expense as long as they are “reasonable” and it is always better to be able to substantiate them.. In terms of postage stamps and postage, this too, the VAT portion can be claimed back provided of course that the postage is being used for business purposes.. Toll fees that are incurred during the course of staff business travelling can have the VAT portion claimed for.. VAT on aeroplane tickets that were purchased for local business travel and please note the “local” in the business travel, as well as the accommodation and other expenses (such as food and drink) can all be claimed.. Remember though, if you are travelling for pleasure and claim everything as a business expense and SARS finds out about this – you will be told to pay the VAT and in fact, you probably will be audited.. These are assets that the company, provided the transaction is between two VAT vendors, will buy and be able to claim the VAT on the purchase.. Ensure your relationship with the VAT man is a great one because it is quite simply this – find out what you can claim for and claim for it, find out what you cannot claim for and don’t claim for it!

Read our guide for small businesses and learn more about claiming VAT back...

Goods and services used for VAT-exempt products and services – If you buy materials or services that your business then uses to create new products and services that are exempt from VAT, such as insurance services or online lottery games, then you cannot claim back VAT on those materials or services.. Claiming back VAT on previous costs The good news for small businesses registering for VAT is you can use your first VAT Return to claim back VAT costs your business previously incurred.. Personal use and claiming back VAT Small business owners can claim back VAT on products and services shared between the business and also used personally.. Claiming back VAT on travel and food You can claim back VAT on travel costs incurred by an employee of your business, where the travel was solely for business such as visiting a customer or attending a trade show.. However, by not claiming the VAT back on the fuel used by one of your business vehicles, you cannot claim VAT back on fuel used by any of the vehicles in your business.. How to calculate how much VAT to claim back Claiming back VAT involves completing a VAT Return – usually each quarter.. For example, if your business charged a total of £20,000 of VAT on its goods and services (output VAT) and it paid £4,000 in VAT on products and services it bought (input VAT) the VAT calculation would be:. However, if your business charged £8,000 of VAT on its goods and services but paid £12,000 in VAT on goods and services it purchased, the VAT calculation would be:. £12,000 (input VAT) – £8,000 (output VAT) = £4,000 in VAT your business can claim back from HMRC.

Although VAT was introduced in South Africa more than 26 years ago, small business owners still don’t know all the rules of VAT, because they are tricky.

You can also claim VAT back from SARS on all the VAT that you have paid for your purchases.. VAT on purchases is called Input VAT.. To calculate the amount of VAT that you need to pay over to SARS, or claim back, you can deduct Input VAT from Output VAT:. If your Output VAT is more than Input VAT, you will need to pay SARS.. If your Output VAT is less than Input VAT, you can claim back from SARS.. Standard-rated: VAT at 15% Zero-rated: VAT at 0% Exempt: No VAT. If you are registered as a VAT vendor, you always have to add 15% to your selling price, except for transactions that can be Zero rated, or that are exempt from VAT.. In this case, you must charge 15% VAT on the sale, and the client can then claim the VAT back from customs.. As explained above, if you make only exempt supplies, you cannot claim any Input VAT, and you don’t even need to register for VAT, even if your revenue exceeds the registration threshold.. Here are transactions that you cannot claim VAT on, even if there is VAT on the supplier invoice:. As a VAT vendor, it is vital that you know what you should include on your own invoice, and what your suppliers need to include on their invoice in order for you to claim Input VAT.. The words “Tax invoice”, “VAT invoice”, or “Invoice” The date and a serialised invoice number The name, address, and VAT registration number of the supplier The name, address, and VAT number of the purchaser, if the amount is more than R5,000 The quantity A full description of the goods/services The value/amount The VAT amount or indication that the total includes VAT

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