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Deadline for DIY Housebuilders VAT Scheme Extended

A step towards simplifying the process ...


Posted by Helen Beaumont on 15/11/2023 @ 8:00AM

As someone who has built their own home or is in the process of doing so, you may be familiar with the VAT DIY Housebuilders Scheme. This scheme allows individuals to claim a refund on the VAT paid for building materials ...

If you're a DIY Housebuilder, keep an eye out for these changes and take advantage of the new and improved system in the future!

If you're a DIY Housebuilder, keep an eye out for these changes and take advantage of the new and improved system in the future!

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However, until now, the process of claiming this refund has been a lengthy and paper-based one. But that is all set to change. HMRC has recently announced plans to introduce digital filing for DIY housebuilders, with the option of submitting VAT refund claims online.

"This move is aimed at simplifying the process!"

It makes it more efficient for both HMRC and claimants and the deadline for claims will be extended from three to six months after completion of the build, giving claimants more time to gather their documents and complete their claim accurately.

The new rules will come into effect from the 5th of December 2023, giving DIY housebuilders ample time to prepare for the changes. This is a significant step towards modernising the VAT DIY Housebuilders Scheme and making it more accessible for individuals.

According to an HMRC spokesman, the digitisation of claims for the scheme will make administration easier for both HMRC and the claimant. This means that the existing process of making paper-based claims will still be an option for those who prefer it. However, the digital claim form will have handy hints and functions to minimise errors, making it easier for those who use it to get their claims right the first time.

"But that's not all!"

The new process will also eliminate the need for submitting invoices at the time of making a claim, simplifying the process even further. This will save time and effort for DIY housebuilders, allowing them to focus on the actual build instead of paperwork.

It's important to note that the VAT DIY Housebuilders Scheme covers both entirely self-build housing and the self-build element of custom housebuilding. In the case of custom builds, the section of the build undertaken by a builder or developer is not subject to VAT at all, as it falls under the zero rating for new construction.

This means that the claimants can reclaim the VAT they pay on building materials for the section of the build they undertake themselves!

These changes will be implemented through a negative statutory instrument (SI) and will come into force on the 5th of December 2023 for claims made on or after that date. DIY housebuilders who are currently in the process of building their own home will still have to follow the existing process.

If you're planning to build your own home, keep an eye out for these changes and take advantage of the new and improved system in the future.

Until next time ...



Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to discover more about VAT when you're a DIY housebuilder, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.

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About Helen Beaumont ...


Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.