Claiming vat from renovation

Forum Categories GENERAL VAT DISCUSSIONS Claiming vat from renovation

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  • #55649

    good morning 
    i am new here and I need some advice
    i am a sole trader and have a aesthetic clinic 
    I am vat registered 
    i have purchased a small house ( for buy to let) which needs some renovation ..I am aware that I can claim the vat from the building materials questions are …
    do I have to inform HMRC that I’m doing this ?
    also , I use xero for my book work I just keep all invoices separate from the clinic ones under a new heading ?
     Thank you very much


    Domestic building work, including repair, maintenance, and improvements are usually charged at the standard rate of vat – 20%. There are several circumstances in which VAT on building works is charged at a reduced rate or even zero-rated.

    In your case VAT is at reduced rate of 5% only if residential property was empty for at least two years. With effect from 1 January 2008, renovations and alterations to residential properties that have been empty for at least 2 years will be eligible for a reduced VAT rate of 5%. This applies to labour and materials associated with repairs, alterations, construction of associated garages and hard landscaping.

    No VAT reduced rate for materials on their own. To get the reduced rate on materials, they have to be supplied with the services.

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