Who we help
VAT on your building project: help for homeowners
Some home projects are 0% or 5% and many are correctly 20%. We check your builder's quote line by line and tell you which applies and why. If you are extending or refurbishing a home you live in, the answer is normally 20%, and we will say so.
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Building your own home
A VAT-registered builder charges 0% on a new house and on the building materials they fit. VAT on materials you buy yourself is reclaimed from HMRC through the DIY housebuilders scheme, in one claim within six months of completion.
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Renovating an empty house
If nobody has lived in the house for the two years before work starts, the renovation can be 5%. You need evidence, such as council tax records or a letter from the council's empty property officer.
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Converting a barn
Turning a barn or other non-residential building into your home is a conversion. The builder's services are normally 5%, and you may be able to reclaim that VAT through the DIY scheme once the home is finished.
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Owning a listed home
Listing gives no VAT relief by itself. Alterations have been 20% since 1 October 2012 and repairs always were. A lower rate only applies if the work qualifies another way, for example as an empty home or a conversion.
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Extending or refurbishing the home you live in
Extensions, loft conversions, garage conversions, new kitchens and general refurbishment of an occupied home are 20%. So are repairs and maintenance. There is nothing to claim.
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Energy-saving materials and disabled adaptations
Installing qualifying energy-saving materials such as insulation, solar panels and heat pumps is 0% until 31 March 2027. Specified adaptations for a disabled person in their own home, such as ramps and bathroom adaptations, are also 0%.
Which home projects can be less than 20%
Start with the honest part. If you are extending, repairing or refurbishing a home you live in, the VAT is normally 20% and there is no relief to find. A loft conversion is 20%. A garage conversion is 20%. A new kitchen is 20%. If that is your project, we will tell you so plainly. You can read more in our guide to extensions and refurbishment.
A lower rate comes into view in a handful of situations:
- You are building a new home. The builder's work and the materials they fit are 0%.
- You are converting a barn or another non-residential building into a home. The builder's services are normally 5%.
- You are renovating a house that has been empty for two years. The work can be 5%.
- You are changing the number of homes in the building, for example turning two flats back into one house. The work can be 5%.
- You are having energy-saving materials installed, or adaptations for a disabled person.
Even then, some items stay at 20% whatever the project. Carpets, appliances and fitted wardrobes are the usual ones. Architects' and surveyors' fees are 20% too.
What we do for you
Send us your builder's quote. We tell you whether there is anything to pursue before you commit to anything. If there is, you get the right rate for each part of the quote, with the reasoning in writing, and a letter you can hand to your builder telling them what to charge.
The fee is fixed and agreed before we start. We do not promise a rate or a saving in advance, because the facts of your project decide that. If you are a self-builder, the claim to HMRC stays with you.
Questions
Straight answers.
My builder has quoted 20%. Is that right?
Often it is. Work on a home you live in is normally 20%. It is worth checking if you are building a new home, converting a building into a home, changing the number of homes in a building, or renovating one that has been empty for two years. Send us the quote and we will tell you whether there is anything to pursue.
I am extending my house. Can I get a lower rate?
Normally not. An extension to an existing home is 20%, and so is an annexe unless it is a separate dwelling that can lawfully be used and sold on its own. Parts of a job may still qualify separately, such as the installation of insulation or a heat pump.
Can I claim back VAT my builder charged by mistake?
Not from HMRC. VAT charged at the wrong rate cannot be reclaimed through the DIY housebuilders scheme. The builder has to issue a credit note and a corrected invoice. That is why the rate needs checking before you pay, not after.
Will you submit my DIY housebuilder claim?
No. We do not submit claims or deal with HMRC for you. The claim is yours to send in. What we can do is work out the correct rate on your builder's quote and show which items qualify and which do not.
Next step
Send us your builder's quote
Upload your builder’s quote or tender. We look at the project and the pricing and tell you whether a lower rate is worth pursuing, before you commit to anything.
- Fixed fee, agreed up front
- Every rate tied to the legislation
- We'll tell you if it's 20%