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From the Front Line

So long, VAT Notice 719

Posted by Jason Orme on 22nd September 2009

VAT Notice 719 is no more. That means something if you're intending to reclaim potentially £1,000s of VAT at the end of your self-build or conversion project.

The good news is that you can still claim back the money, but the guidance provided is no longer under the 719 banner. You always had to fill out a separate form but now the guidance is provided as part of the new form known as 431NB. (431C for conversions). 

So, we'll endeavour to update the site, but for now, all references to VAT Notice 719 need to be replaced with a nod to 431NB.

Why, you may ask, have they changed it? Well, HMRC felt that too many applications were incoplete or misunderstood. Perhaps no-one read 719. They tell me that 'separate dedicate guidance' will support the completion of the forms, but all I can see on what they send me is a regurgitation of the usual facts. It's clearer, but there's much less of it. So whether it will serve its purpose is difficult to say.

There are a range of questions about VAT I'm going to put to HMRC and I'll keep this blog updated with my findings.

Why are things never simple? Full details here

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Jason Orme

Jason Orme

Jason Orme has been the Editor of Homebuilding & Renovating for many years and has written on property and self-build matters for, amongst others, The Independent and The Telegraph. He self-built in 2004 and is looking for another plot.

Meet Jason Orme at the Homebuilding & Renovating Shows.

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#1

Vat at reduced rate

fergus mcnicol (not verified)
Thu, 05/11/2009 - 09:50
fergus mcnicol's photo

I seem to run into problems with sub contractors when i explain they should charge vat at the reduced rate of 5% ( examples...mono blocking contrator, water treatment equipment installation,) I have a main contrator but have sourced my own sub contrators for certain jobs and pay them direct.

They only seem to understand VAT at the standard rate....

Do you have any advice?

regards

Fergus

#2

VAT Reduced Rate

Jason Orme
Thu, 05/11/2009 - 10:50
Jason Orme's photo

Hi Fergus

Well, this is the key - because if they charge you the incorrect rate, it's the subbie you'll have to chase for the difference and not the MRC (who do not pay back VAT paid in error).

The best advice is to have a copy of the form VAT431NB (or C if it's a conversion) to hand and show them it where possible. You're in a strong position - namely that you could easily, of course, refuse to pay them until they give you a correct invoice. Getting money back out of them after the event is likely to be almost impossible.

Best of luck

#3

VAT on listed barn conversion

AlJames (not verified)
Fri, 07/01/2011 - 12:40
AlJames's photo

Hi,

I am currently getting tangled up with the VAT rates applicable to a Grade 2 listed barn we are converting to a dwelling. The planning permission is for conversion to self-catering holiday accommodation, and our fear is that the standard rate is applicable due to not being able to get planning permission for standard residential.

What's your view?

Kind regards

Alan

#4

renovation to new build.

Carl Galfskiy (not verified)
Fri, 30/12/2011 - 18:16
Carl Galfskiy's photo

Hi I am currently renovating a 300 year old house in Scotland.
It is made up of two new extentions, one at either end and the centre portion is to be renovated.It is not a listed building.
I have almost completed the first end which is basically a bedsit over the garage. All new. I have paid VAT on this as I have gone along at 20 %.
Unfortunately whilst starting renovation on the old part in the centre, I discovered un repareable foundation problems. This has led me to the decision to demolish the centre part, go for a planning change and bulid the entire structure new.

My questions are.
Do I have to register for VAT reclaim before the build.
Can I reclaim the VAT paid on the materials so far spent as I have all the reciepts in retrospect.
Lastly how long do you have from startimg the build to claiming the VAT. Is there a limit as this build will take another three years.

#5

VAT rules are quite complex

Jason Orme
Tue, 03/01/2012 - 10:48
Jason Orme's photo

VAT rules are quite complex in this situation so if anyone reading my answer with more knowledge disagrees then please do post. You should also check your situation with the VAT office in Birmingham (the helpline is pretty busy but it's worth getting their assessment).

The simple answers to your questions are:

1. No. Keep all the receipts and claim at the end.
2. Yes you can.
3. There is no limit that I'm aware of.

Obviously the key to you getting the VAT back is the change in planning permission. It must be classed as a new-build.

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