have had the opportunity to build their very own home, from start to finish! It
may have taken them some years to get to the finished product but they are
slowly honing in on the end product (don’t get me wrong they aren’t living in a
shell, they just have a few odd jobs to get fixed)
be great when starting out with a new build project, purchasing the land, architects,
builders and then the materials!
You can get
quite easily bogged down with the never ending bills that you may forget to
take a reprieve and remember what you are doing it all for. We love going to
their house especially around this time of year, they have a lovely log burner
and the rooms are full of furnishings, unlike ours which is still is the mists
as to when we will get anywhere need close to finishing!
the ever so good son in-law I have taken on the burden of producing their VAT
reclaim, when you are building a new property for your own/holiday use the government
reward you, like they would to a builder. You shouldn’t pay any VAT on
materials used for a new build (you can get allowances for conversions but
there are strict guidelines to follow), basically you have 30 days from the
date you house is signed off as complete to submit your VAT reclaim to HMRC.
To make sure the process goes well, ensure all the invoices are filled, dated, fully itemised (no whole jobs bills) so you can exclude the labour VAT charges. Remember all invoices need to be address to you (or you need to document why) and have a valid VAT number on.
So I am
currently running through all the invoices dating back to the time they first
broke ground on the project, you have to list each invoice with date, number,
VAT amount and description. It’s quite a tedious task but when you are talking
between 15 – 20% refund on all the building materials it adds up to a pretty
some exclusion’s to the claim process, you cannot claim for labour, equipment
hire and carpets, but as the claim forms come with a half decent guide it doesn’t
take long to get the hang of the do and don’ts.
So if you
are currently thinking about building yourself a new home, then remember you
will need to account for the VAT for some time until the house is signed off
until you get you money back!