VCONST24550 | DIY builders and converters VAT Refund Scheme - eligibility of claims: condition 9: is the claim in time?

Six month time limit

From 5 December 2024, Refund Scheme claims must be made within six months of the date of completion. However, exceptionally, claims may be accepted on an individual basis if there is a reasonable excuse for the delay.

The claimant must explain in writing why a claim is being submitted late. If no satisfactory explanation is received, the claim must be refused.

Examples of reasonable excuse may include:

• compassionate reasons

• negligence of a professional adviser

• circumstances outside the claimant’s control, such as difficulty in obtaining invoices or completion certificates.

Supplementary claims

The DIY scheme restricts claimants to a single claim for VAT incurred on the construction of a dwelling, providing the claim is made within six months of completion.

However, a supplementary payment may be allowed for invoices:

• relating to retentions

• erroneously omitted from the original claim

• previously disallowed by HMRC and allowed following further consideration

• issued late by contractors.