VAT refund, can I claim on items bought after completion?

[dysty42]

I've self built a house in my garden and now got the completion certificate, but I am still within the 3 months allowed for submitting the claim.

I want some stone worktops(I just have some cheap laminate ones in place now).

If I order the worktops now, and include the invoice with the reclaim - will it be allowed(despite being purchased after the completion)? (Assuming of course I get the claim to them within 3 months of the completion..)

[newhome]

Yes, you can include invoices received up to the day you send the claim off. They've always been allowed before that is, unless HMRC has had a change of policy. In general stone worktops aren't DIY fitted though so if it's supply and fit they should be zero rated. 
 

[ProDave]

Are you fitting the stone worktops yourself then?    I thought most came supply and fit.

 

If supply and fit, try and convince the supplier that this is a new build house and the fitting of the worktops is the last item needed for completion and then they will zero rate supply and fit.

[dysty42]

Really appreciate the advice. One supplier has responded they are happy to do this, so long as I supply a copy of my planning permission.

[Sandybay]

Thinking about project managing our new build later this year, 

If you employed a plumber for example, and he looked over your plan worked out everything required for your house, would he purchase materials or would I? And if he did, would he still charge  the vat on the materials and his labour, for me to claim later, or would he knock off all vat before I get the bill? 

[newhome]

1 hour ago, Sandybay said:

If you employed a plumber for example, and he looked over your plan worked out everything required for your house, would he purchase materials or would I? And if he did, would he still charge  the vat on the materials and his labour, for me to claim later, or would he knock off all vat before I get the bill? 

It depends what arrangement you have with the plumber. If you want to use him for labour only then you would need to agree with him that you would provide all of the materials that you would order yourself and reclaim the VAT later. He might not be that keen to supply a list of materials for the job though. His labour would be zero rated. 
 

Or you could ask him to quote for supply & fit in which case the whole bill should be zero rated. 

 

 

[Temp]

7 hours ago, Sandybay said:

Thinking about project managing our new build later this year, 

If you employed a plumber for example, and he looked over your plan worked out everything required for your house, would he purchase materials or would I? And if he did, would he still charge  the vat on the materials and his labour, for me to claim later, or would he knock off all vat before I get the bill? 

 

If you buy the materials you can claim the VAT back using the self build reclaim scheme. His labour must be zero rated to you as you cannot reclaim VAT on services. His quote should be "inc VAT at 0%". If not best get it changed before you accept it.

 

If he buys the materials and fits them (aka supply and fit) then he must zero rate both to you. You then have nothing to reclaim. He can reclaim the VAT when he makes his VAT return. Likewise his quote should be "inc VAT at 0%". Some trades are reluctant to do this. If that happens refer them to VAT notice 709 and it may help if you give them a "certificate" (aka a letter) stating their work relates to a new house at <address>, <planning reference number> and atrach a copy of your planning grant.

 

If he isn't VAT registered he can't reclaim the VAT paid on materials so best you buy them yourself so you can reclaim it back. Make sure to ask for VAT invoices.

[Temp]

PS. Never pay VAT on labour as you cannot claim it back from HMRC. If HMRC  spot the mistake they will refer you back to the company and good luck getting it back from them.

 

There are exceptions:  Consultants like Architects - their services are standard rated. You have to pay VAT and can't reclaim it either. Likewise tool hire 8s standard rated and can't be reclaimed.

[Sandybay]

Thank you very much Temp, 

That was explained very clearly, 

I shall now try to explain it to my wife ?. 

[dysty42]

On my original question, I've now ordered some stone surfaces(which they've agreed to zero rate). I've also today submitted my VAT claim. Based on my completion certificate, I pass the 3 month deadline in about 2 1/2 weeks. However, the company I ordered the surfaces from I've paid a deposit to, but they cannot get a templating person out to me until the end of febuary, which I assume will mean they issue the invoice then which will be past the 3 month limit.. so the question is - do people think I will be risking getting in trouble for doing this? Morally it doesn't seem particularly wrong, as I will genuinely be installing the surfaces in a new built house, but are hmrc likely to a) notice b) not be happy that it is post completion? 

[Bitpipe]

9 hours ago, dysty42 said:

On my original question, I've now ordered some stone surfaces(which they've agreed to zero rate). I've also today submitted my VAT claim. Based on my completion certificate, I pass the 3 month deadline in about 2 1/2 weeks. However, the company I ordered the surfaces from I've paid a deposit to, but they cannot get a templating person out to me until the end of febuary, which I assume will mean they issue the invoice then which will be past the 3 month limit.. so the question is - do people think I will be risking getting in trouble for doing this? Morally it doesn't seem particularly wrong, as I will genuinely be installing the surfaces in a new built house, but are hmrc likely to a) notice b) not be happy that it is post completion? 

 

I would not worry about it - if the contractor has agreed to zero rate then you're fine - technically the risk (not that there is any) sits with them.

 

As their invoice has no VAT in it, you won't be including it in the reclaim to HMRC.

 

 

Edited January 28, 2021 by Bitpipe

[dysty42]

Thanks for the response - I guess I will just see what happens. I had to send them a copy of my planning permission, but of course that doesn't give any indication of whether the build is complete or not. I was just worried that at some later date the invoice would make it's way to hmrc who might check on it somehow. But will just see how it plays out. Don't particularly think I am doing anything out of the 'spirit' of the new build VAT exemption.. just I've been a little too slow.

[Bitpipe]

39 minutes ago, dysty42 said:

Thanks for the response - I guess I will just see what happens. I had to send them a copy of my planning permission, but of course that doesn't give any indication of whether the build is complete or not. I was just worried that at some later date the invoice would make it's way to hmrc who might check on it somehow. But will just see how it plays out. Don't particularly think I am doing anything out of the 'spirit' of the new build VAT exemption.. just I've been a little too slow.

 

You're over thinking it.

 

I don't think HMRC are that switched on.

 

Anyway, any liability would sit with the contractor, not you.