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Posted Mon, 25 Mar 2024 19:19:44 GMT by info@wilcox
We started building work on a property that has been empty for over 3 years when the work commenced. I have the necessary evidence off the empty homes officer at the local authority to validate this. my question is that we were not aware that there was reduced VAT until this weekend following a visit to the NEC homebuilders show. We are now half way through the major refurbishment and have already paid many invoices at the standard rate of VAT. How do we claim back the overpayments of VAT at 20% already made to our VAT registered builder? What happens now in the future if contractors refuse to reduce the rate of VAT to 5% on their invoices what can we do then? Is there anyway we can claim ourselves for materials that were not supplied at the lower rate?

[Display name changed - Admin]
Posted Wed, 27 Mar 2024 09:36:19 GMT by HMRC Admin 25 Response
Hi info@wilcox,
If you perform work on a buildings that have been empty for 2 or more years then the majority of the work should be charged at the reduced rate of VAT.
Please see below:
8. Reduced rating the renovation or alteration of empty residential premises
We would recommend going back to the builders who have charged you the incorrect VAT and provide them with evidence of its empty status so that they can refund this to you.
You would not be able to use the DIY Scheme to recover the VAT in this situation and it would need to come from the builder.
Thank you. 
Posted Tue, 30 Apr 2024 08:13:31 GMT by Ilana Val
Hi, what is the empty building status evidence and how to obtain it, please? Kind regards 

Name removed admin .
Posted Wed, 01 May 2024 06:45:58 GMT by info@wilcox
Hi All you need to do is contact your local council tax office at your local authority. Ask them to provide you with the evidence via a letter that documents that the property has been empty for over the necessary 2 year requirement to claim a reduced rate of vat. I just dropped them an email and I had a letter back within 24 hours. There is usually an "empty homes officer" that works for all local councils who's job it is, is to assist in getting empty homes back into use. So liaise with them they tend to be very helpful. Get on the case though as this is a really beneficial way of saving thousands in VAT when completing a renovation to an already empty property, as we have found out.
Posted Wed, 01 May 2024 13:30:21 GMT by HMRC Admin 2 Response
Hi,

You can find guidance here:

Buildings and construction (VAT Notice 708)

Thank you.

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