The taxpayer built a new dwelling which was completed on 17 October 2022 and he submitted a VAT refund claim to HMRC under the DIY scheme in January 2023 (VATA 1994 s 35). The claim of £30 960 included 207 invoices of which 201 HMRC approved in April 2023 producing a refund of £29 961.
As a separate issue the taxpayer asked HMRC how he could reclaim £9 959 of VAT incorrectly charged by and paid to Hill Plant and Groundworks Ltd on work that should have been zero rated. The company had since gone into voluntary liquidation so it was not possible to get a VAT credit. HMRC treated the request as a further DIY claim and rejected it on the basis that the scheme can only refund correctly charged VAT.
The taxpayer appealed. He referred to the historic CJEU case of Reemtsma Cigarettenfabriken...
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