VAT431NB is HMRC's DIY Housebuilders Scheme for new self-build homes. It allows you to reclaim VAT on eligible building materials that you bought directly. Qualifying contractor construction services should be zero-rated (0%) — if a contractor has charged 20% VAT on qualifying services, that is an overcharge that needs a corrected invoice, not an entry on VAT431NB. The claim must be submitted within 6 months of the completion certificate being issued.
That is a typical VAT431NB reclaim value on a self-build project — entirely from VAT on materials you bought directly from merchants and suppliers. Missing invoices, incorrectly claimed contractor VAT, or excluded items can reduce it significantly. HMRC allows one claim per project, with no second chance.
Qualifying construction services on a qualifying new dwelling should be zero-rated by the contractor. This is not a tax that gets reclaimed — it should simply not be charged in the first place.
If a contractor charges 20% VAT on services that should be zero-rated, that is an overcharge. The incorrectly charged VAT cannot be added to your VAT431NB claim — you need a corrected invoice from the contractor.
Materials you buy directly from merchants (timber, blocks, insulation, windows, doors, sanitaryware, floor tiles) are correctly charged at 20% standard rate. That 20% is fully reclaimable via VAT431NB, provided the materials are incorporated into the building before completion.
Fitted carpets, most electrical and gas appliances, furniture (other than fitted kitchen furniture), tools, consumables, professional fees (architects, engineers, surveyors) and ornamental landscaping cannot be included in a VAT431NB claim.
VATBuild is not affiliated with HMRC. References to HMRC publications are for informational purposes. Always consult a qualified tax adviser before submitting a reclaim.
VATBuild checks every invoice against HMRC Notice 708 rules for new builds: it identifies which contractor invoices should show 0% (and flags those incorrectly charged at 20%), which direct material purchases are reclaimable via VAT431NB, and which items fall outside the scheme entirely. The result is a structured claim summary with every line item explained.