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HMRC internal manual

VAT Construction

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

Three month time limit

Refund Scheme claims must be made within three 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 three 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.