Commentary

V7.394 DIY housebuilders—costs that can be claimed

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.394 DIY housebuilders—costs that can be claimed

Part V7 Tax planning | Commentary

V7.394 DIY housebuilders—costs that can be claimed

The first priority is to be aware of what services provided by a builder are zero-rated or chargeable at the lower VAT rate of 5%. This is important for two reasons:

  1.  

    •     from a cash flow angle, it is better not to pay VAT in the first place, rather than pay it to the builder and then have a time delay before it is recovered from HMRC with a DIY claim, and

  2.  

    •     under the DIY scheme, HMRC will only refund correctly charged VAT. If a builder charges VAT at 17.5% instead of

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