Do late claims for self build VAT get accepted?
What sort of mitigating circumstances would be required?
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Replies (3)
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There may be some ambiguity as to when the property was "completed" (Regulation 201), as the legislation does not properly define it, HMRC usually took a view it was when the completion certificate was issued or when the property was occupied - whichever happened first - but there have been Tribunal cases which challenge this notion and each hangs on the specific facts and causes of the delay.
There is no one size fits all mitigation.
I would certainly submit the claim as no doubt there is a lot of VAT at stake, but prepare for a rejection and go for an appeal and explain the reasons for the delay in submitting the claim, but it'll need to be a robust reason, you can't just say "we were busy" or "Accountant was slow processing it", focus on the reason why the client was unable to meet their obligation to file within 3 months.
Was there uncertainty as to when completion occurred, did completion happen in January but Council only issued the certificate in June due to backlog, can you evidence that, etc. Did they move whilst the property was uninhabitable?
Sorry for hijacking this thread, but I have a client who has been building their self build for many years (I think it could be 8 or 10 years) with no sign of completion any time soon. Is there a time limit in terms of how far back VAT can be claimed in this kind of situation? I'm hoping I will have retired by the time he finishes but it would be useful to know either way!
