Interesting VAT rulings. Seems you can make 2 claims..

[Temp]

https://www.rossmartin.co.uk/vat/vat-cases/5833-multiple-diy-housebuilder-claims-permitted

 

"In Andrew Ellis and Jane Bromley v HMRC [2021] TC08277, the First Tier Tribunal (FTT) found that more than one VAT repayment claim could be made by DIY housebuilders during construction, despite HMRC’s policy to the contrary".  Continues..

 

It also appears you dont have to prove completion.... 

 

 

The FTT allowed the appeal. It found that:

• Section 35 VATA 1994 did not prevent more than one claim from being made.
  • Although the word ‘claim’ was drafted in the singular, the Interpretation Act 1978 indicates this must include ‘claims’ as there was no provision to the contrary.
• Regulation 201 of the VAT Regulations 1995 is ultra vires where it requires evidence of completion of the dwelling before a claim is accepted, as this limits a self-builder to a single claim.

 

I had to look it up but ultra vires means "acting or done beyond one's legal power or authority".

 

 

 

 

[Temp]

Personally I wouldn't rely on this just yet but it might help anyone that has made a mistake and missed something.

[Hilldes]

@Temp that is no bad thing as in our case the single claim presents a cash flow challenge as we will need the VAT reclaim to complete the project and would have to forgo any further reclaim.

 

I wonder if our grass roots VAT inspectors have been informed.

[Bozza]

Last week I received my claim acknowledgment letter from HMRC.

 

It states clearly that I am unable to make further claims.  Don’t know if this was always a standard thing that was said, or in response to this case.  

[nod]

So much is changing 

After charging vat within my business 

for past 35 We are no longer required to collect vat anymore 

[jack]

1 hour ago, Bozza said:

It states clearly that I am unable to make further claims.  Don’t know if this was always a standard thing that was said, or in response to this case.  

 

I don't recall either, but HMRC has a long history of not changing their policies in response to tribunal decisions. If a higher court issues a decision, they might do, but based on how they've behaved with the DIY VAT reclaim system over the years, I suspect they'll change the rules by the absolute minimum amount possible.

[ToughButterCup]

2 hours ago, jack said:

.... I suspect they'll change the rules by the absolute minimum amount possible.

 

But they do change.

And thats the point. As you  say elsewhere, in their practice - as opposed to what they write - the only thing that's consistent, is inconsistency. That's what brings a  red mist across the eyes of anyone who tries to conform to a set of written rules.   

 

I got as far as I did in my professional career by reading instructions carefully, and giving the author of the question or the rule exactly what they want(ed). And reading the answers to questions I in turn  put to others with great care and attention (Licences to Practice were at stake) . I'm good at it. When I got things wrong, I always had to be open and honest about it. Here we have an organisation so obviously sick that they can't admit to any failing.

 

For an organisation like the HMRC to knowingly, wilfully flout their own rule set makes for a culture among its customers  of Well-if-you-are-going-to-fook-me-don't-be-suprised-if-I-try-hard-to-shaft-you. Its outrageous.

 

Disgusted of Lancashire.

 

 

[ToughButterCup]

3 hours ago, nod said:

...

for past 35 We are no longer required to collect vat anymore 

 

Its called retirement innit Gary? ?