D-I-Y claim – change of intention

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The D-I-Y scheme legislation and guidance do not work well when the claimant changes his/her intention before or during construction.

HMRC have published some guidance, which is here: https://www.gov.uk/hmrc-internal-manuals/vat-construction/vconst24350

Anecdotal evidence suggests that HMRC look for any and every reason to reject D-I-Y claims. This forces the claimant to pursue a Tribunal appeal. Which brings me to the recent case of Richard Akester. In reaching its decision, the FTT applied this test: “For construction to be otherwise than in the course or furtherance of any business, there must be no intention to carry on a relevant business during the course of carrying out the works.” That leaves the taxpayer having to prove a negative.

The Tribunal also commented that the taxpayer provided ‘contradictory information.’ That never helps!

The decision is here: http://www.bailii.org/uk/cases/UKFTT/TC/2018/TC06711.html

About Les Howard


Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire

I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.


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