VAT reclaim pitfalls?

[Tony K]

Hi All

I am getting close to seeking Building Regs sign-off for my SB, which in turn will allow me to submit my VAT reclaim.

 

I would be very grateful for guidance..

 

1. I understand I can submit till receipts from Wickes, B&Q etc. How do I distinguish between items on a particular receipt which I am claiming for, and those I am not? 

2. If I accidentally claim for something I should not, will it foul the whole claim? If so, what happens then?

3. I know have three months from BRegs sign off to make my claim, but getting BR sign-off and actually finishing the house are not the same thing (or will not be in my case). If I get BRegs signoff on 1st November, then buy further SB materials on the 2nd Nov, can I still claim the VAT back on those materials on the 3rd Nov? Or am I limited to items purchased before the BRegs sign-off date?

4. Has anyone had any serious problems with their reclaims? If so, what caused them?

 

Thanks!

 

 

 

[jack]

1. I understand I can submit till receipts from Wickes, B&Q etc. How do I distinguish between items on a particular receipt which I am claiming for, and those I am not? 

 

- I put a line through items I wasn't claiming for and wrote in the new totals with those items excluded.

 

2. If I accidentally claim for something I should not, will it foul the whole claim? If so, what happens then?

 

- Probably not. It's impossible to tell with HMRC, but generally they will just disallow things that they don't believe should have been claimed for.

 

3. I know have three months from BRegs sign off to make my claim, but getting BR sign-off and actually finishing the house are not the same thing (or will not be in my case). If I get BRegs signoff on 1st November, then buy further SB materials on the 2nd Nov, can I still claim the VAT back on those materials on the 3rd Nov? Or am I limited to items purchased before the BRegs sign-off date?

 

- The three months from BR signoff is a guideline at best. For a long time, HMRC ignored their own guidelines and were using any evidence they could find that people had moved in, and started the three month clock from then. The easiest point for them to show is the property's entry onto the valuation register for council tax. I get the feeling that things might have eased off a bit since the peak of their bad behaviour maybe three years ago, but I'd still be wary of relying on the sign-off date as triggering the three months if I were in a position to file within three months of entry onto the valuation register.

 

- I believe you can include materials up until the time you submit the claim (including after sign-off). If anything, late purchases may support an argument that the house was not yet finished.

 

4. Has anyone had any serious problems with their reclaims? If so, what caused them?

 

- Mine went through fine, no issues. I'm sure others can comment on their experiences.

[MPH243]

1 With our reclaim I just put a line through items not being reclaimed and wrote the new VAT total for the invoice. 

 

2 I did not have any queries so I don't know. 

 

3 I believe it is up to the date you send off your claim within 3 months after br sign off.  Ours was 2 1/2 months after br sign off, I don't think I had any purchases in that time. 

We also had been living there 2 years so I don't know if I got lucky or they are being more reasonable now. 

 

4 We were paid in 2 weeks from the date we sent off the claim off. We got paid everything we claimed for. 

[Temp]

7 hours ago, Tony K said:

1. I understand I can submit till receipts from Wickes, B&Q etc. How do I distinguish between items on a particular receipt which I am claiming for, and those I am not? 

 

Cross out those not claimable. I also wrote the amended total and VAT on them in pencil. I numbered all my receipts and made sure the same numbers were on the spreadsheet. 

 

7 hours ago, Tony K said:

2. If I accidentally claim for something I should not, will it foul the whole claim? If so, what happens then?

 

If its a whole category of stuff (eg you are trying to incorrectly reclaim vat paid in error on labour) they will send it back. Just a few items they will process it and tell you why the reclaim is different to your total. Just one or two they might not even notice.

 

7 hours ago, Tony K said:

3. I know have three months from BRegs sign off to make my claim, but getting BR sign-off and actually finishing the house are not the same thing (or will not be in my case).

If I get BRegs signoff on 1st November, then buy further SB materials on the 2nd Nov, can I still claim the VAT back on those materials on the 3rd Nov? Or am I limited to items purchased before the BRegs sign-off date?

 

General rule is you cannot reclaim for anything purchased after completion. However I think there have been exceptions, possibly items delayed by bad weather?  Best not rely on them allowing anything purchased late if you can avoid it.

 

7 hours ago, Tony K said:

4. Has anyone had any serious problems with their reclaims? If so, what caused them?

 

 

Not in my case. All went well.

 

[Tony K]

Thanks, everyone, much appreciated.