Can I still reclaim VAT?!

[Juj]

I bought my property as a derelict shell that qualified as a conversion since had been empty for so long.  We built the main home but left the outbuildings (garage and annexe) to be completed when funds allowed.  As such, we didn't get the house signed off, and when the building inspector reached out to ask, we explained as much.  We did however move in to the main house and have paid council tax since then, this was in 2012.  

 

As the property wasn't completed and I envisaged more spending, I didn't submit my VAT reclaim.  Well, since then, many things have changed, including the original plans and we will be spending a considerable sum to now finally complete.  The question I have is, will I still be able to claim VAT back? I'm not too bothered about the VAT from when we first started, though that would be a bonus (I have all of the receipts still), but I would obviously like to reclaim VAT on the building that is to take place although I fear they will reject it based on the fact that we've been living here? 

 

Any advice would be much appreciated.

[lizzie]

Lots of chat on other threads about vat reclaim. Just do a search.  Its a big subject!

[newhome]

As @lizzie says there are a number of quite decent threads about VAT. I don’t think anyone can tell you what might happen as it does sometimes feel that it depends who processes your claim at HMRC as there do seem to be some inconsistencies in how claims are assessed. 

 

Were the annexe and garage part of the original plans? If yes then my take on that is that the project isn’t complete so you can include everything in your claim. If no then you will be on dodgy ground I think. If HMRC asks you just say that you were living in the house but it didn’t get meet building standards for sign off and you ran out of cash to complete the work. Whether that approach will work or not I don’t think anyone can really judge TBH. I do think you will need to evidence a substantial amount of spending to ressurect the project now otherwise they may just claim that you should have applied much earlier. 

 

 

Edited July 25, 2018 by newhome

[Thedreamer]

Didn't somebody posted a VAT topic with an HMRC letter recently, where the HMRC didn't repay as they proved that they living in the property?

[newhome]

5 minutes ago, Thedreamer said:

Didn't somebody posted a VAT topic with an HMRC letter recently, where the HMRC didn't repay as they proved that they living in the property?

 

It wasn’t that they were living in the property per se although that was mentioned. Many many self builders live in their properties before construction is complete. I suspect that we will never know the full facts of that case unless it goes to tribunal and we read the decision in about 18 months. I suspect that in that case HMRC decided that the work was complete bar some hard landscaping not defined in the PP so in their view it was refused due to late application. If there is still work to do that is defined in the PP or on the approved plans that may lead HMRC to look more favourably on the OP’s case but who really knows TBH. 

[Juj]

I did read the link that @lizzie posted and it seems as @newhome has mentioned that the grounds for refusal are different to mine.  I don't intend to submit late, I'll be sure to do this as soon as completion certificate issued.  Regarding the annexe and garage, these were indeed part of the initial planning application.

 

[Temp]

You might be OK but a completion certificate isn't the only thing the VAT man will accept as evidence of completion.

 

I would read the claim form carefully and submit a covering letter that plays up the scale of work that still needed to be done and any problems funding it etc.