{"id":30170,"date":"2016-03-15T15:47:25","date_gmt":"2016-03-15T15:47:25","guid":{"rendered":"https:\/\/www.constablevat.com\/?p=30170"},"modified":"2016-03-22T11:07:42","modified_gmt":"2016-03-22T11:07:42","slug":"better","status":"publish","type":"post","link":"https:\/\/www.constablevat.com\/better\/","title":{"rendered":"When it’s better not to ‘Do-It-Yourself’"},"content":{"rendered":"

At CVC we deal with all aspects of VAT, working with large multi-national businesses, accounting professionals and OMB\u2019s. Additionally, we work with private individuals dealing with VAT on a one-off transaction, in particular property conversions or new builds.<\/p>\n

Most businesses recognise the benefits of engaging professionals at an early stage of a large project to minimise the risk of VAT complications. This often fails to happen when individuals are building a new house or converting a property.<\/p>\n

Perhaps it is the very nature of the \u2018DIY\u2019 builder that prevents those individuals seeking VAT advice in the planning stages of a project. These are people who are capable of building their dream home from scratch or by converting often crumbling properties to dwellings. They have vision and determination and are often managing very tight budgets. There is clear guidance from HMRC on its website<\/a><\/u> on how to submit a claim. I am sure many a self-builder asks \u2018Why would I pay someone to prepare a claim when I can do it just as well?” <\/em>A key factor is that often people who do not deal with HMRC regularly have no concept of just how rigid HMRC can be. HMRC often complains about taxpayers who rely on the letter of the law to circumvent its intention (tax avoiders). However, in any situation in which the letter of the law works against the taxpayer HMRC always<\/u> takes the view that it is legally obliged to apply VAT law strictly without regard to whether that delivers a fair outcome.<\/p>\n

A ‘DIY’ builder would recognise that although placing one brick on top of another is not complex in itself, if the walls of the new house are built by someone with no training, expertise or understanding of underlying pitfalls there is a good chance the house won\u2019t stand the scrutiny of the building inspector, assuming it remains standing long enough to be inspected! The same principles apply to preparing and submitting a DIY Housebuilder claim.<\/p>\n

It is not too difficult to gather invoices and schedule them on a spreadsheet, quickly fill in the necessary claim form with the bank details, sign it and pop it in the post and await the refund; but will the claim withstand the scrutiny of HMRC? There are many issues to address when considering if a DIY claim is valid. These include:<\/p>\n