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Posted Thu, 08 Aug 2024 08:12:19 GMT by Trevor Nunn
I live on a farmhouse on a Site of Special Scientific Interest (SSSI). This is recognised as a farm and I have a number of obligations under agreement with Natural England and DEFRA to maintain the SSSI status (it is a rare 35 acre wildflower meadow). This means that, while it is recognised as a farm and I have considerable costs to maintain it, it receives no income beyond minimal fundings from a Stewardship Agreement with Natural England so there has been no need for me to be VAT registered. That being the case, and I am able to reclaim input costs incurred in the repair of the farmhouse? It is the worst of both worlds otherwise as I have the costs of running a farm but without the VAT benefits?
Posted Fri, 09 Aug 2024 05:36:02 GMT by HMRC Admin 25
Hi 
Unfortunately if you are not registered for VAT then there is no entitlement to recover any VAT as input tax.
In order to register for VAT you would need to be making taxable supplies.
Please see the link below:
Who should register for VAT (VAT Notice 700/1)
Thank you. 
Posted Fri, 09 Aug 2024 09:20:18 GMT by Trevor Nunn
Thank you. We do sell seed we harvest from the wildflowers and the organic hay but it has never been enough to warrant being VAT registered. Can we register nonetheless to benefit from the input tax. It feels like we are being penalised from having all the obligations and costs from running the farm as a SSSI without being able to at least cover those costs so would be good if we could reclaim a portion of the input tax for repairs and renovations necessary to the farmhouse which essential to the management of the SSSI.
Posted Mon, 12 Aug 2024 10:46:16 GMT by HMRC Admin 21 Response
Hi Trevor,
If you make taxable supplies and you are trading below the VAT Registration threshold you can register for VAT voluntarily.
Please see the guidance below:
3. Working out whether you need to register.
Thank you.
Posted Tue, 27 Aug 2024 09:25:46 GMT by Trevor Nunn
For clarity, if I register for VAT voluntarily for the modest sale of wildflower seeds and organic hay which will be just a few thousand pounds annually, will it entitle me to recover input tax for the works to the farmhouse (which is essential to the full-time operation of the site which is classified as a Site of Special Scientific Interest and so is a "mixed use farm"). The costs of painting these obligations are considerable so I would like to recover input tax from works to the house given that it essential for the full-time upkeep of the SSSI. The cost of the farmhouse works are likely to be considerable but I am led to believe that I can claim a percentage of the VAT on this? We are not extending. The house has been untouched for 40 years so the works are necessary.
Posted Tue, 03 Sep 2024 07:28:29 GMT by HMRC Admin 17 Response
Hi.

Please see the guidance below which provides information about recovering VAT in relation to farmhouses.

See :

VAT Input Tax   .

Thank you .

 

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