reclaiming vat on utility/plant room cupboards

[gravelrash]

reclaiming vat on utility/plant room cupboards

 

New build with separate utility room- can you reclaim vat if you fit kitchen cupboards to the room or does it have to be a framed cupboard with no internal panels and wall to wall?

[nod]

We claimed our utility as part of the kitchen 

But fitted sliding doors where the plant room is and claimed those with the redt of the house 

[gravelrash]

unfortunately mine is a totally separate room

[ProDave]

Our utility is also a separate room.  How are they going to know that 1/3 of the cabinets you bought from howdens are going in a utility?  Where does it even say you can't claim the VAT on utility room cupboards?

[saveasteading]

A utility room is part of the house. I can't see what the issue is.

[Bozza]

Don’t quite understand second half of your question but can you claim kitchen units that are fitted into your separate utility room.  Yes of course.  Totally normal thing to claim. And worktops, sink, etc etc etc.  As long as it’s consistent with your plans.  

 

 

 

[Drellingore]

12 hours ago, ProDave said:

How are they going to know that 1/3 of the cabinets you bought from howdens are going in a utility?

 

This is a fair point.

 

@gravelrash there's some guidance in the HMRC VAT Construction Manual that explicitly states that:

 

Quote

Furniture incorporated in utility rooms is also ‘building materials’, even if the room is not attached to part of the kitchen.

 

In this context cupboards are normally deemed furniture and not building materials, but this page seems pretty clear that you're fine to reclaim. I am not an accountant though 

[saveasteading]

1 hour ago, Drellingore said:

cupboards are normally deemed furniture and not building materials, 

It seems clear that hard fitted equipment and furnishings are deemed vat recoverable.

So tiles yes, carpets no.

Utility wall cabinet yes, washing machine no.

Curtain pole yes, curtains no.

Etc.

[Drellingore]

1 hour ago, saveasteading said:

It seems clear that hard fitted equipment and furnishings are deemed vat recoverable.

 

The HMRC Construction VAT Manual doesn't make it so cut-and-dry with regard to hard-fitted things. You could fit out a cupboard with things that are fixed to the walls, and are bespoke to the space, and still be deemed furniture and therefore not VAT-recoverable: https://www.gov.uk/hmrc-internal-manuals/vat-construction/vconst13640. There is a limit on what can be added to an enclosed cupboard before it strays from being building materials to furniture (a single shelf with a hanging rail).

 

If you fancy a laugh, have a look for the notes in that manual on how judges pondered what furniture is, and the rules on vanity units.

[saveasteading]

Interesting, thanks. I have read the rulings on enclosed cupboards and am none the wiser.

 

I think we will use the principle of reading the simpler rules, and not pushing our luck.