Claiming Back Vat
Posted 23 April 2016 - 12:33 PM
Posted 23 April 2016 - 01:04 PM
Posted 23 April 2016 - 02:00 PM
Posted 23 April 2016 - 02:16 PM
In short the overall rate is...
* Building a new house the rate is 0% (usually a mix of 0% and 20% paid and reclaimed = 0%)
* If converting a building to a dwelling(s) the rate is 0% (actually a mix of 5% and 20% then reclaimed = 0%)
* If renovating a dwelling that has been empty for > 2 years the rate is 5% (only if using a VAT reg Builder)
* If renovating a dwelling that has been empty for > 10 the rate is 0% (can DIY and reclaim the VAT).
It's important to note that the way you arrive at these overall rates is different. It depends on how you are building it (DIY or VAT registered Builder). It depends if you are talking about labour or materials. Sometimes you have to pay the VAT at 20% and reclaim it. Sometimes you shouldn't be charged VAT in the first place. The devil is in the detail. Sometimes ONLY a VAT registered Builder can get it zero rated. For example self builders can only reclaim VAT on a house they are building to live in. They cannot reclaim VAT on a house they are building for profit. However if a VAT registered builder constructs the same house for you then they can zero rate it. The system is horribly complicated/bonkers.
It's important that the house is empty for 2/10 years before work starts. So do NOT make the mistake of moving in the week before work starts! Start work THEN move in. Keep records.
Edited by temp, 23 April 2016 - 02:28 PM.
Posted 23 April 2016 - 07:28 PM
Posted 23 April 2016 - 08:42 PM
Outside landscaping isn't normally zero rated or eligible for reclaim on materials for a new build, unless it forms a specific part of the planning approval. In general, things like drives, fencing, hedges and paths may be considered eligible, but patios, lawns, flower beds, planting etc won't normally be allowable for either exemption or reclaim unless you have a specific planning condition that requires a detailed landscaping plan and unless the reclaim/zero rating relates to specifically itemised on that approved landscaping plan.