Deadline extended for VAT DIY housebuilder claims

Taxpayers building their own home will be able to submit DIY housebuilders' VAT refund claims digitally HMRC has confirmed.

HMRC has published a policy paper announcing that individuals building their own home or converting a non-residential building into their own home will have the option of submitting their refund claim digitally from 5 December 2023. It will also extend the time limit for claims from three months to six months after completion of the build.

The digitisation of claims for the scheme should make administration easier for both the tax department and the claimant according to HMRC but the existing process for making paper-based claims will remain as an option for those who wish to use it.

Extending the time limit will allow claimants more time to gather their documents and complete their claim which HMRC expects will result in fewer omissions or errors.

As...