Boundary wall, driveway and VAT

[Sue B]

We are still waiting for planning permission (at appeal due to non-determination in proper timescale).  If we start on the boundary wall and driveway (a very rough driveway to level it out a bit)  now, before planning permission is granted, can we claim the VAT back when we finally submit the claim, assuming that planning is finally approved?  

 

I know electric gates cannot be claimed for but everything apart from the electric parts of the gates appears to be eligible.

 

We do have permission for a very different house in place at the moment but as we are not planning to build that we haven’t met all the pre-commencement conditions.

 

Do we have to wait or can we start the boundary wall now?

 

cheers everyone.

[nod]

All parts excluding the motors on the gates are claimable 

You’re drive vat will be claimable 

But be very careful Starting them will effect your Cil agreement and may effect your planning As no commencement notice has been issued yet 

[Temp]

2 hours ago, Sue B said:

 If we start on the boundary wall and driveway (a very rough driveway to level it out a bit)  now, before planning permission is granted, can we claim the VAT back when we finally submit the claim

 

I would say not or at the very least there is a risk they could be refused. The receipts would be dated before you could legally build a qualifying dwelling. The existing PP can't be started due to conditions and the new one hasn't been granted yet.

 

In one case the self builder got PP to build a granny annex or holiday let but the planners added a condition that said it could not be sold off separately to the main house. That condition made it ineligible for zero rating. Halfway through the build he got the condition removed making it eligible for the VAT reclaim. However HMRC rejected all receipts dated before the condition was removed.

 

+1 on what @nod said about the CIL..

 

If your council has the CIL you should be exempt as a self builder. However its essential to follow the claims procedure to the letter and keep evidence the council received all necessary documents. Starting work before that's been done can loose you the exemption. 

[newhome]

+1 to what @Temp has said. You could be refused the reclaim for all materials bought prior to PP being in place so personally I would wait. 

 

[joe90]

21 hours ago, Sue B said:

We do have permission for a very different house in place at the moment but as we are not planning to build that we haven’t met all the pre-commencement conditions.

I was maybe in a similar position, we got planning fir a room in roof two bed to enable us to start. We wanted a 3 bed cottage . The downstairs and garage were exactly the same, then we appealed the previous application fir a cottage knowing that if it failed we could still carry on with the two bed. We won the appeal before the walls got to first floor so it was only the upper part that was different. I bought materials fir the two bed which turned into the three bed. HMRC did not query it.

[newhome]

2 hours ago, joe90 said:

I bought materials fir the two bed which turned into the three bed. HMRC did not query it.

 

It depends on your appetite to risk. HMRC may not query it of course but if they do you run the risk that they may disallow the refund. If that’s ok then go ahead, if not you may want to wait. Or write to them and ask the precise question so that you have the reply in writing. 

 

[Sue B]

Thanks everyone.  Looks like i’ll have to wait to get the VAT back.  Very frustrating.

[ProDave]

Don't forget if you are using a contractor, then show them the existing PP and they should do "supply and fit" zero rated.

 

[Sue B]

We’ll be building it ourselves to practise using the blocks so supply only.