Property VAT Consultants

HMRC announce long awaited improvements to the DIY VAT Refund Process

by Berthold Bauer on December 8, 2023

At last, HMRC have introduced online submissions and have extended the deadline for the DIY VAT housebuilders scheme from the 5th December 2023.

The scheme allows individuals who build their own home to receive a refund of the VAT they have paid on eligible building materials to be installed in their home. The refund also applies to non-residential to residential conversions as well as for the construction of a new charity building used for charitable or relevant residential purposes.

HMRC faced criticism regarding the rigidity of the scheme, and the difficulty some housebuilders faced pulling together the required documentation by the deadline, from tax payers, advisers and Tribunal judges.  Subsequent improvements were announced in the Policy Paper published on the 13th November 2023, found here, which:

  • provide claimants with the option to file claims for a VAT refund under the scheme electronically
  • extend the time limit for claimants to make a claim under the scheme from 3 months to 6 months from the completion date of the build
  • amend the list of documents required to be submitted at the time of the claim to omit invoices, but include such evidence relating to the residential conversion from a derelict building or shell as may be specified by HMRC in a public notice.

HMRC will continue to accept claims made through the current paper-based process however we recommend wherever possible, electronic claims are made as HMRC have confirmed that the estimated processing times will be 3 weeks for online, 6 weeks for postal.

These changes came into force onto the 5th December 2023 for claims made on or after that date.

HMRC have created a portal to submit the claims which can be found here.

How can BBVAT Help?

Housebuilders that wish to understand more about the scheme, and whether their build qualifies for a refund can contact our free VAT helpline for a no-obligation discussion with one of our sector experts.

If you would like any advice or assistance with submitting a DIY VAT Refund Claim, please call us on 01732 868266 or email us at

Berthold BauerHMRC announce long awaited improvements to the DIY VAT Refund Process

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