Two newbuilds and VAT claim

[PWS]

Just wanted to say thank you to everyone who has posted about VAT. I have been dipping in and out of the forum whilst considering our VAT claim and it has been so useful I thought I would share our experience as it is a little more unusual.

 

We have built two properties in our back garden one for me and my wife and one for our son. I project managed both and to help our son with finances we only charged him the net amount for materials, bearing the burden of his VAT until the end so we had a lot riding on the claim!

 

We were confident that as I had built both properties for family members there would be no problem with the claim being in my name but we did misjudge the claim deadline which has given us a few sleepless nights. Throughout the build I had the completion certificate in mind as "the golden ticket".  My wife and I moved into our house in 2018. There were a few outstanding items  but nothing major apart from landscaping. Our son has only just moved in. The properties were built alongside each other at the same time but his was delayed for a few months due to his finances. Since moving in, we have badgered our building control company for the completion certificate but there was always something minor that needed doing so we only received an interim certificate in August.

 

That's when we began to panic after reading several posts about moving in date v completion certificate. We were confident we would get the VAT on our sons property but began to wonder if we had missed the boat for ours. 

 

After reading a post about a build being "one project" I called the helpline and asked how I should sort the invoices for both properties e.g. could they just all be put together as it was one project. They said we should submit them altogether, not separated into the two properties. I found this really odd as it seemed to me it would make it much more difficult for them to wade through but it did support my argument that it was one project. I used the spreadsheet provided on here (thank you) which is much easier than writing up the form. I also attached a note being completely honest that we had moved into our property in 2018  but that as it was one project the other property was not quite finished and enclosed interim completion certificates for both.  I also explained that a handful of the invoices had been ordered by our son and his partner so were not in my name. Like many on here, we sent it off with everything crossed. 

 

After a couple of weeks on 5 September we received the initial letter confirming they had everything and tentatively hoped this was good news. That letter said we should hear again within 6 weeks. After 6 weeks I called the helpline for an update but there was a recorded message saying that claimants should wait another 30 days.  

 

Finally on 21 October we received our package back and opened it with bated breath. They had agreed to the whole claim with just a query on 3 invoices and said we would receive payment in 20 working days. Two suppliers should not have charged VAT so we have re-claimed that from the suppliers. The third invoice was a deposit for stairs which had no breakdown so we have resubmitted that to HMRC with a copy of the quote referred to.

 

We were so relieved and hope this information may help someone else.

[Temp]

That's very good news. Reading your story slowly I had a horrible feeling it wasn't going to end well but good to see HMRC taking a pragmatic approach.

[newhome]

That’s a really good outcome for you, and really useful information for others. Thank you. I will put a link to your post in the VAT reclaim guide on here as it contains useful details about building 2 properties for family members that aren’t very clear from HMRC’s own guidance. 

 

Out of interest whose name is the land in? Is it plots owned by separate family members? 

[PWS]

Hi newhome one plot is in my sons name and the other is in ours. I agree the HMRC guidance is not clear and we couldn't find any info on our particular situation anywhere so hope its useful. I think our conclusion was to be really organised, preferably as you go along and to include an honest summary of the situation if it is unusual. Even though my wife was organised with the paperwork it still took her many hours to compile it all for the claim. 

[PWS]

Just an update on VAT payments and when you might receive payment based on our experience:

5 September Letter from HMRC acknowledging claim and confirming they have everything 

28 October Letter from HMRC received confirming all ok and payment will be made in 20 days (letter dated 14th)

31 October - money received in account!

 

 

[newhome]

3 hours ago, PWS said:

31 October - money received in account!

 

Yes, that’s the one bit of the process that’s faster than they state.