Paul Charles Hunt (TC2676)
The taxpayer built a house on a piece of land next to his garage business. He could not afford to engage a builder to carry out all the work which he mostly did himself with help. On completion he claimed the VAT on materials under the DIY housebuilders scheme.
HMRC wrote to the taxpayer saying £1 411 of his claim in respect of doors and windows was not allowable. The service of supplying windows under the housebuilders scheme should have been zero rated. The supplier in this instance had incorrectly added VAT to its invoice.
The taxpayer appealed.
The First-tier Tribunal ruled no VAT could be recovered because no VAT should have been charged on the supply of windows. This was “harsh” on the taxpayer but the tribunal could do “nothing to alleviate this burden”.
It was too late to approach the supplier for a VAT...
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