HM Revenue & Customs has updated its guidance on VAT refunds for new builds under the DIY housebuilders scheme, adding a schedule of invoices template and information on using an agent when making a claim1. The update also adds "date of issue" to the list of what an invoice must show1. The guidance page carries a publication date of 5 December 2023 and a last updated date of 6 November 20251.
The scheme allows a self-builder to claim back VAT on building materials bought for a qualifying new dwelling, which HMRC describes as similar to buying a new house at the zero rate1. The guidance states that a claim can be made where planning permission exists to construct a new dwelling as a family home for residential or holiday purposes, for the claimant or their relatives, or to buy a new building as a shell from a developer and fit it out to completion1. It adds that the claimant does not need to do all, or any, of the work themselves1.
"A schedule of invoices template and information on using an agent when making a claim has been added."
The guidance sets out what can and cannot be claimed. Only building materials qualify1. Fitted furniture other than fitted kitchen furniture, most electrical and gas appliances, carpets and underlay, garden ornaments, sheds and greenhouses, plant, tools and equipment, and building land are excluded1. Some appliances can be claimed where they are designed to heat space or water, to provide ventilation, air cooling, air purification or dust extraction, or where they are door entry systems, alarms, lifts or hoists1.
| Item | Can be claimed |
|---|---|
| Building materials incorporated in the building or its site | Yes |
| Fitted kitchen furniture | Yes |
| Basic wardrobes meeting stated conditions | Yes |
| Appliances designed to heat space or water | Yes |
| Most electrical and gas appliances | No |
| Carpets, underlay and carpet tiles | No |
| Sheds, greenhouses and garden ornaments | No |
On timing, the guidance gives different limits in different places. It states that a single claim only can be made, no more than 3 months after the new build is completed, and elsewhere that the single claim must be made no more than 6 months after the building has been completed1. It also states that where VAT has been paid, this should be done no later than 4 years after completion1. HMRC says it aims to process a claim within 3 weeks, or within 6 weeks, after receiving all information needed1. Where a claim is rejected or not paid in full, the guidance has been updated to allow additional information to be provided, and a written challenge must go to the address in the decision letter within 30 days of the letter's date1.
Why it matters for households
For a household building its own home, VAT on materials is a direct cost that the scheme is designed to return. The rate is 20 per cent on most building materials, and the guidance gives the calculation as tax inclusive amount x (1 ÷ 6)1. Because the refund is paid into the bank account of the DIY housebuilder, the claim sits with the household rather than the builder1. The invoice requirements matter practically: a claim depends on invoices showing the correct details, and VAT charged in error cannot be claimed from HMRC1. The new template and agent guidance address the paperwork side of a claim rather than the eligibility rules, which are unchanged in the text.
What happens next
The guidance does not set out a date for further changes. The page records a last updated date of 6 November 20251. Households at the claim stage can find the claim route through the how-to hub, which covers the practical steps for home energy projects.