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VAT reclaim from HMRC - how long is it taking at the mo?


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Does anyone know how long it is taking the TAX office to come back regarding DIY VAT reclaims at the moment?

In order to ensure I don't get clobbered for CIL I need to submit CIL form 7 which requires "An approved claim for HM Revenue and Customs for VAT refund".  CIL form 7 has to be submitted within 6 months of completion certificate and hence I'm starting to worry.

Any info gratefully received.

 

 

 

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Someone reported the other day that he just received his money for a claim submitted on 1st June 

 

https://forum.buildhub.org.uk/topic/16230-vat-office-letter-detailing-current-approach-to-claims/?do=findComment&comment=304190

 

The completion evidence needed for CIL is the approved claim from HMRC, evidence of a self build warranty, or a self build mortgage. If you don’t have either of the other 2 I would speak to the council now and explain that HMRC are taking around 8 months to process these. In my head they send you a letter saying that your claim qualifies before they check all of the invoices and pay the monies owed but it’s a long time since I did my reclaim and can’t remember. @Wagas, do you know please? If so would you mind sharing the letter please with personal details removed. 
 

The CIL evidence is discretionary and councils can agree to accept something else I believe but you need to speak to them. 
 

 

 

 

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We were coming up to the deadline to submit I hadn’t realised that I needed to sign our cil off till someone on here pointed it out to me We put the claim in and the Cil sign off on the same day will a foot note explaining that we were still awaiting confirmation of the final Cil and all was fine 

I think at the moment there has to be some leeway 

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Just goes to show how little people administering CIL understand about the documents required to evidence this. No idea about VAT or self build warranties, and one comment shows complete ignorance about the VAT position for a self build stating 

 

The builder already sounds like some of his practices are not ideal!”

 

I’ve long wondered why those documents are needed to evidence CIL exemption because as the case in the link below proves all of these are optional when self building. This is a while ago so hopefully they are a bit more clued up now. 
 

https://www.khub.net/web/planningadvisoryservicepas/forum/-/message_boards/message/71860181

 

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Emailed the Shropshire CIL team and the next day received the following:

 

"When you submit CIL Form 7-2, I would advise you provide a copy of the letter you would have received from HMRC to confirm they have received your claim. That way, I will be aware you are trying to obtain confirmation of a DIY housebuilder VAT refund. You can then provide the confirmation letter when you do receive it. If the confirmation letter is not forthcoming close to the 6 month deadline, a potential extension can be discussed since this would be due to circumstances beyond your control. "

 

So thanks Newhome for the suggestion.

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  • 4 weeks later...
On 01/02/2021 at 15:07, newhome said:

Someone reported the other day that he just received his money for a claim submitted on 1st June 

 

https://forum.buildhub.org.uk/topic/16230-vat-office-letter-detailing-current-approach-to-claims/?do=findComment&comment=304190

 

The completion evidence needed for CIL is the approved claim from HMRC, evidence of a self build warranty, or a self build mortgage. If you don’t have either of the other 2 I would speak to the council now and explain that HMRC are taking around 8 months to process these. In my head they send you a letter saying that your claim qualifies before they check all of the invoices and pay the monies owed but it’s a long time since I did my reclaim and can’t remember. @Wagas, do you know please? If so would you mind sharing the letter please with personal details removed. 
 

The CIL evidence is discretionary and councils can agree to accept something else I believe but you need to speak to them. 

 

I only just saw this message. All I submitted concerning VAT was the HMRC letter confirming they had received my VAT claim, not that it was successful (attached). This was accepted by my local authority. Even got a nice response:

 

 

Dear 

Thank you for submitting the completion documents in respect of xxxxxxxxx. I am happy to confirm these are acceptable to comply with the CIL regulations under which you were granted self build relief. Our official acknowledgement is attached for your records - please note the requirement to supply further evidence at three years occupation.

I hope you are enjoying our new house - no doubt you have plenty to keep you occupied during this lockdown period!

Many thanks

Angela
 

Scan 186.jpeg

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  • 5 weeks later...
4 minutes ago, Bored Shopper said:

Hi, has anyone got their refund recently? We submitted in December and according to HMRC letter the consideration time expired early March. Still no news...


Someone who submitted in November still hasn’t received their refund. I dare say Covid plus Easter will be their new excuse. They say that things are delayed because people are working from home. God forbid that after a full year they might be able to be properly productive like the majority of folk have managed after far less time. 
 

 

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  • 4 weeks later...
  • 4 weeks later...

A happy update: we have received our reclaim today!

Submitted mid-December, got a letter that it was approved last week, and got the money today. 

Every.Single.Penny.

 

Thanks to the Forum for all the wisdom, and to Andrew and his team for processing a tonne of paperwork. We could not have done it all without you guys.

 

(fun fact: had moved in mid-September, completed end of November, and all this time up until late May the house remained unbanded for council tax payments. Nice to start paying council tax after you get your VAT return. Does not happen too often...).

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  • 4 weeks later...

Our VAT clam was submitted in February this year.

 

Today a big fat envelope arrived in the post with all my receipts returned and a covering letter telling me the claim has been approved in full with no deductions or contested receipts and payment will be made by BACS within 20 days.

 

So that's a little under 6 months

 

All very handy as our 0% credit cards are due in a couple of months so we will now have the funds to clear them and not need to find somewhere else to roll them over.

 

 

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6 minutes ago, ProDave said:

Our VAT clam was submitted in February this year.

 

Today a big fat envelope arrived in the post with all my receipts returned and a covering letter telling me the claim has been approved in full with no deductions or contested receipts and payment will be made by BACS within 20 days.

 

So that's a little under 6 months

 

All very handy as our 0% credit cards are due in a couple of months so we will now have the funds to clear them and not need to find somewhere else to roll them over.

 

 

 

Great news Dave - It's a nice feeling when it all gets sent back with no challenges.

 

I wonder, given the backlog, if they're taking a lighter touch on the reviews. 

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On 01/04/2021 at 14:24, Wagas said:

I'd say give it 9 months to get paid. You'd think they'd be quicker doing things when working from home, with no constant tea breaks and chat. I bet they're all doing sod all!

 

You need to balance out the lack of office gossip, tea and fag breaks with the new temptation of Cash In The Attic and Homes Under The Hammer.

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14 minutes ago, ProDave said:

Today a big fat envelope arrived in the post with all my receipts returned and a covering letter telling me the claim has been approved in full with no deductions or contested receipts and payment will be made by BACS within 20 days.

 

That's awesome news - I remember the feeling very well!

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  • 2 weeks later...
  • 2 months later...

Hi folks 

 

just new to this group but projectonh managing my self build currently and needing my vat return to complete a few things to allow me and my pregnant wife to move In.

 

I called the VAT office today and was told they are 2/3 months behind due to last year and lack of staff....

 

is there anyway to you expediate for self build or is it a case of  sitting and waiting ( with stress and worry )

 

Thanks and hope your all well. 

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11 hours ago, KLlane said:

 

is there anyway to you expediate for self build or is it a case of  sitting and waiting ( with stress and worry)


Unfortunately not. All of the self build claims are delayed. Covid is just a convenient excuse. Mine took 20 weeks in 2018 when covid wasn’t even a thing. They just blamed staff shortages at that time. 
 

The important thing is to ensure that you don’t get anything wrong on the claim to maximise your chances of it all being accepted. There is a fairly comprehensive guide available on here but it’s a sub forum for regular members and you need more posts to be able to view it. You do get a letter from HMRC to confirm that your claim is eligible well in advance of the invoices being checked and that’s the first hurdle really. Beyond that it’s just a case of them checking individual invoice for eligibility and paperwork correctness. You do get the opportunity to provide further information if you have an invoice rejected. If it’s an order rather than an invoice for example you can go back to the supplier and ask for a proper VAT invoice and then resubmit although clearly it’s best to submit the correct paperwork to begin with. Remember that you can only claim for eligible MATERIALS bought on a supply only basis and preferably in your name or you may need to provide payment evidence if they’re not. Labour invoices and supply & fit arrangements need to be zero rated to you and are not claimable and nor are services many of which are standard rated. 
 

 

 

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  • 1 month later...

Hi folks 

 

I found this group so helpful so I'll ask a question - I assumed that I could submit multiple claims ( I.e I have sent in all my invoices for everything up to the point of furnishment which HMRC have confirmed they have got and looked at  ) and then submit into HMRC all my invoices for all my appliances / my tiles etc under my DIY reference ? 

 

is this ok to do ? Have I messed anything up ?

 

Does each claim  ( set of invoices) get aggregated together under my DIY reference number and then once I send in my confirmation that the build is completed I will get the full amount as one claim ? 
 

can anyone confirm this process ...

 

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15 minutes ago, KLlane said:

Hi folks 

 

I found this group so helpful so I'll ask a question - I assumed that I could submit multiple claims ( I.e I have sent in all my invoices for everything up to the point of furnishment which HMRC have confirmed they have got and looked at  ) and then submit into HMRC all my invoices for all my appliances / my tiles etc under my DIY reference ? 

 

is this ok to do ? Have I messed anything up ?

 

Does each claim  ( set of invoices) get aggregated together under my DIY reference number and then once I send in my confirmation that the build is completed I will get the full amount as one claim ? 
 

can anyone confirm this process ...

 

 

 

Yeah sorry to say you have messed up.  Check page 7 of the VAT431NB form and it states:

 

A building is normally considered to be completed when it has been finished according to its original plans. Remember that you can make only one claim no later than 3 months after the construction work is completed. The 3 months will usually run from the date of the document you’re using as your completion evidence. If your claim is late you must send us a letter explaining the delay

 

Also, appliances wouldn't have be claimable at any point.

Edited by BMcN
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Hmmm, @klane, the threads on this subject  are a good evening's read by the fireside. The situation is complex, and rules are inconsistently applied and regularly misapplied .

But the general rule is as the post above outlines.

Edited by ToughButterCup
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  • 3 weeks later...

Just had a call from HMRC today 12 Nov..  My self build VAT claim was submitted in June.  She just had one simple query re my form. I think they have someone checking the forms and paperwork prior to forwarding to another dept to check the invoices etc.   Otherwise she said everything seemed ok & in order.
 

She provided me with the following information as I had a few questions:

 

1.  Based upon current turnaround, my claim can be expected to be paid end of year so a 6 month turn around thereabouts.

2.  During the lockdown HMRC were paying out 70% of claims pending application review that has now ceased.  Normal process now review then pay out has resumed.

3.  My scenario was building control sign off in March 2021, for the house.  Since then I have purchased numerous eligible items eg to build garage, landscaping material etc.  She confirmed all would be eligible as within 3 months of house sign off.

4.  In my claim many of the items weren’t proper original invoices, often online copies as due to pandemic paper copies weren’t provided. no issues it seems for that. 
5.  My garage had PP but didn’t require a warrant due to size.  No issues with materials for that on the claim.

6.  With my claim I submitted a covering letter with explanation of certain claims and timings etc.  It seemed that was very helpful for them.

 

 

 

thought others may find this helpful.

 

 

 

 

 

 

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