Claiming vat back on building works
Claiming vat back on building works
Author
Discussion

Djtemeka

Original Poster:

1,980 posts

221 months

Monday 4th April 2022
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I’m vat registered and would like to get a builder to build an 11x2m side extension on my house. Older house, not a new build.
Brick built store room for materials and tools etc. this will free up my garage for the bike and car.

Is it possible to claim the total building cost vat amount as it’s for my work purposes? I’m a sole trader.

Thanks smile

Simpo Two

92,708 posts

294 months

Monday 4th April 2022
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Djtemeka said:
I’m vat registered and would like to get a builder to build an 11x2m side extension on my house. Older house, not a new build. Brick built store room for materials and tools etc. this will free up my garage for the bike and car.

Is it possible to claim the total building cost vat amount as it’s for my work purposes? I’m a sole trader.
I would think that if the extension is used wholly and exclusively for business, yes. Otherwise not.

Djtemeka

Original Poster:

1,980 posts

221 months

Monday 4th April 2022
quotequote all
It would be yes.

Sheepshanks

40,952 posts

148 months

Monday 4th April 2022
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I believe we reclaimed the VAT on garden offices for a couple of our guys, but I suppose the scale of cost was somewhat less.

Djtemeka

Original Poster:

1,980 posts

221 months

Tuesday 5th April 2022
quotequote all
Sheepshanks said:
I believe we reclaimed the VAT on garden offices for a couple of our guys, but I suppose the scale of cost was somewhat less.
Looking at the price of garden offfices, you may be surprised at the costs these days! WOW!

Mine is an 11m wall, 2.4m with door and a 1.8m with a door. Flat roof, graded ground and a couple lights. Literally a store room.

Djtemeka

Original Poster:

1,980 posts

221 months

Tuesday 5th April 2022
quotequote all
Getting rid of my garage stuff and shed in the garden for more space.

Utilising the dead unused side space (lhs from the front) of the house.
Reclaiming the garden space and garage.




CubanPete

3,802 posts

217 months

Tuesday 5th April 2022
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If you claim vat back if it is for work, do you risk losing some of the CGT exemption for your home?

Djtemeka

Original Poster:

1,980 posts

221 months

Tuesday 5th April 2022
quotequote all
CubanPete said:
If you claim vat back if it is for work, do you risk losing some of the CGT exemption for your home?
Not a clue smile

Mr Pointy

13,333 posts

188 months

Tuesday 5th April 2022
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I'd guess not a snowflake's chance but only your accountant can answer with any accuracy. I think VAT is only reclaimable on new builds which is why it's sometimes better to flatten a house than modify it extensively.

Eric Mc

125,607 posts

294 months

Tuesday 5th April 2022
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Is this project part of your VAT registered business activity?

ozzuk

1,452 posts

156 months

Tuesday 5th April 2022
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Just a thought, if you claim the extension is 100% for business, will that then open you up to planning, insurance and mortgage (if any) issues?

Eric Mc

125,607 posts

294 months

Tuesday 5th April 2022
quotequote all
You cannot claim something is part of a business when it isn't. I want the OP to tell us whether this project is a personal one or a business one.

If it is a personal project (i.e. it is his home or a property that is not connected to his business activity), then none of the costs incurred on the project can be processed through the business and none of the Input VAT on these costs can be reclaimed through the business VAT returns.


Mr Pointy

13,333 posts

188 months

Tuesday 5th April 2022
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Eric Mc said:
You cannot claim something is part of a business when it isn't. I want the OP to tell us whether this project is a personal one or a business one.

If it is a personal project (i.e. it is his home or a property that is not connected to his business activity), then none of the costs incurred on the project can be processed through the business and none of the Input VAT on these costs can be reclaimed through the business VAT returns.
The OP has already said it's an extension on the side of his home.

Eric Mc

125,607 posts

294 months

Tuesday 5th April 2022
quotequote all
Mr Pointy said:
The OP has already said it's an extension on the side of his home.
That still doesn't exclude it automatically as a genuine business related cost. I was just hoping for some clarification.