newhome

My house is a Scotframe timber frame. They provided the drawings, amended the design when we altered it, provided the SER certificate for the frame, the timber frame and extras such as the internal doors, skirting, staircase, built in wardrobes (VAT reclaimable) etc. They were quite good to deal with. They did not provide the labour so we had to pay full VAT on the supply and reclaim it later. They did give us the name of a company to use to erect the TF, but after getting quotes we went with someone else.

I added that bit when you were writing I think The downside for someone bringing a house that has been empty for over 2 years but not 10 years back into use is that there is no reclaim scheme so they either have to only use supply & fit arrangements @5% from VAT registered traders or pay 20% VAT themselves that can't be reclaimed if they are DIYing. The reclaim scheme for eligible conversions is EXACTLY like the new build scheme other than for labour or supply & fit you are charged 5% VAT initially that you claim back when you do the reclaim.

Yes that's correct - for a dwelling unoccupied for 10+ years or a conversion. The reclaim form is VAT431C. If you buy your own materials 20% VAT applies but just as for a new build that can be reclaimed for eligible materials. The 5% rate only applies to labour or supply & fit. VAT431C

Dwellings that have not been lived in for at least 10 years or barns etc. that are being converted into dwellings should be eligible for the VAT reclaim scheme the same as a new build. The difference is that labour and supply & fit arrangements are not zero rated for these properties and a 5% rate applies. That 5% is reclaimed through the VAT reclaim scheme so they end up being in the same position as a new build. The 5% rate also applies to buildings that have been empty for 2+ years but in that case there is no reclaim scheme and the owner has to pay 5% VAT.

Yes it’s in the VAT sub forum but the OP won’t be able to access that yet as access needs 10+ posts.

That sounds horrendous. We bought a plot with PP but it didn’t stop all of the nonsense with the ‘neighbours’. The plot is outside of the village so doesn’t impact anyone in the village at all. It stands as one of 4 only houses in this location, one of those being another new build as the plot was split. Our direct neighbours who lived here at the time in a listed cottage said that they were delighted that 2 houses were going to be built here as the plot was an eyesore and a dumping ground for rubbish. The community (village) council had been against houses being built here but they were overruled and the plot got PP for 2 houses (we bought one of the plots when it was split). During the course of the build we ended up in the community council minutes as a pretty much standing agenda item with various misdemeanours being minuted and reported to the planning officers. It became a standing joke to read the minutes and see what we had apparently done that month. We had the main council out here on a few occasions, letters from the community council, and on one occasion the police. And everything was complete nonsense. Anything from complaining that my neighbour was leaving his bins in a place they didn’t like on collection day (outside his house like everyone else), to us being reported when we built the detached garage here (allowed under permitted development). After about 3 years they got fed up and unleashed their wrath on some other poor soul but some people are pathetic (at best) or simply vile individuals, especially as the houses here affect them not one bit. I avoid the village totally and only go up there to vote or to post a letter.

I don’t even know how HMRC could know how high foundations were or whether they were retained if the PP said demolish existing dwelling and replace with new build.

I don't think the Homebuilding site is correct as you can definitely keep the slab. Whether or not that extends to piles in your case is a bit more tricky. The only guidance I can see is here: VAT information sheet 0717 and here: HMRC internal manual Your scenario fails the 'ground level' test I think but would pass if it meant 'ground floor level'. In this scenario you will be better writing to HMRC and asking the specific question (don't bother using their phone helpline as they have given out advice in the past and then stated they have no record of it when the case went to tribunal).

If hired with an operator the job should be zero rated. This is shown in VAT Notice 708: VAT Notice 708 This is also made clear in HMRC's internal manual: HMRC Internal Manual It must be zero rated at source as there is no way of you claiming it back afterwards. The VAT reclaim scheme is for materials only. You will need to tell them to refer to VAT Notice 708 and zero rate the invoice.

I did wonder about that but I can't see any reference to 'existing foundations' being excluded that the OP notes. If you retain the slab for the ground floor should it matter if it's raised about ground level? One of those ambiguous questions worth asking specific advice about I imagine. If however the PP shows demolition of house, followed by new build how would HMRC even know how 'high' the old foundations are? Would you even volunteer to them that the foundations had been retained? The ones that seem to go to tribunal seem to be those that started off as a rebuild, the walls collapsed or the foundations weren't adequate so they became a new build as a result without going back and getting the PP altered to say demolition and new build.

Where are you seeing the guidance in respect of foundations? In the guidance notes for the reclaim (Form VAT431NB) VAT431NB it clearly states that you can retain the slab at ground level and it says the same in VAT Notice 708: VAT Notice 708 A qualifying building is constructed when it is built from scratch, and, before construction starts, any pre-existing building is demolished completely to ground level (cellars, basements and the ‘slab’ at ground level may be retained) – see also sub-paragraph 3.2.3; I can't see any mention of foundations in that context anywhere? The word 'foundations' doesn't appear in the legislation either; Value Added Tax Act 1994, Schedule 8, Group 5, Note 18

You are right to be worried. Some of the builders we used took enormous risks IMO and as @JSHarris says trying to get them to work differently is like trying to get a fish to ride a bike. We did have a scaffolding accident here (luckily not uber serious) and thankfully our insurance covered it when the person came after us for compensation, but it was stressful and took literally years to resolve with us being served with court papers a couple of times during that process.

Same here. Integral blinds only and I generally use them on the tilt setting rather than turn anyway. Easy peasy to wash from the inside too when on the turn setting.

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I leave all insects be outside. Hell I even rescue spiders and move them to safety inside the house but flies in the house I zap.

I think we’d been in well over a year before they charged us. Maybe closer to 2!

That’s good news. Unfortunately the council tax folk have no idea how long a self build takes. You really grafted with yours but it still took much longer than their (IMO) p*ss poor and unreasonable estimates. They simply saw you as a cash cow. It’s inconsistent too. Our council wasn’t even bothered until well after we moved in. You applied for your reclaim at exactly the right time given that HMRC have had their arses kicked by the tribunal judges. Happy days, and start planning to spend the reclaim!

I’m working from home and not finding it unbearable TBH. The room I’m working in is 25 degrees. No windows open as that just encourages bugs. I might open the bedroom window tonight if it’s as hot as last night once the lights are out. A tower fan running makes it bearable though.

Self build mortgages rates tend to be more expensive than a standard mortgage product in general so not really. It’s why people are generally keen to remortgage as soon as they complete the build. The banking crisis was in part caused by banks offering very large mortgages that became unaffordable and with falling property prices many defaulted. This led to much stricter regulation in the banking industry and lenders are much less likely to abandon salary multipliers for someone with a low salary. If you were in a professional job with the expectation that your salary should increase rapidly in the near term there are specialist lenders that will look at offering higher salary multipliers but I doubt that you’d find that in the self build market.

It’s based on affordability and thus salary multipliers are for the most part used to determine this. The FCA issues rules and guidelines that lenders have to abide by. One of the key ones is that the lender must assess whether the customer will be able to pay the sums due, and that the lender must not enter into the transaction unless it can demonstrate that the mortgage contract is affordable for the customer. You can’t use land or an estimate of what a property might eventually be worth to determine affordability. The lender is only able to make an assessment of what you can afford based on your income. How else can you seek to pay the monthly payments if not via income? There is also a lot more uncertainty and risk for the lender with a self build mortgage meaning that there are few players in the market to choose from.

You've probably signed somewhere to say that you agree not to alter anything and that they can come and inspect it but I very much doubt that they would bother, plus if you knew they were coming you could just switch it back!

There are a number of references to cooling needing to be disabled on this forum ... https://forum.buildhub.org.uk/topic/2776-overheating/?do=findComment&comment=42663 https://forum.buildhub.org.uk/topic/3559-rhi-up-by-a-third-if-you-installed-after-14-dec-2016/?do=findComment&comment=59426 https://forum.buildhub.org.uk/topic/3559-rhi-up-by-a-third-if-you-installed-after-14-dec-2016/?do=findComment&comment=59440 Maybe because cooling is not eligible for the RHI payment. How could you tell what was heating only if it did both?

It definitely used to state that it wasn't allowed. Let me see if I can find it (or they may have altered it). I can see why they might be pedantic as the incentive is supposed to be for producing heat. Hell, you are not even allowed to use ST for space heating for some reason best known to them ....

Want a job? ?

Sorry phone did an autocorrect. As @ProDave says I meant MCS. MVS is an IBM Mainframe operating system and my phone is more used to me typing that ?