VAT reliefs on renovation works must be secured before you contract and before invoices are issued. Once you have paid a 20% invoice that should have been 0% or 5%, recovering the overpaid VAT requires the contractor to issue a corrected invoice and adjust their own VAT return — which becomes harder after the project completes. This checklist covers the 12 VAT questions every renovation homeowner should answer before signing a building contract.
Every qualifying VAT relief on a renovation is applied at the point of invoicing — not reclaimed at the end. A heat pump incorrectly invoiced at 20% instead of 0%, or a qualifying empty-property renovation incorrectly charged at 20% instead of 5%, can only be corrected while the project is live and the contractor is willing to reissue. After completion, the leverage to secure corrections disappears.
1. Does the project include energy saving materials (insulation, heat pumps, solar)? If yes, confirm supply-and-install and 0% rate. 2. Has the property been empty for 2+ years? If yes, qualifying works may be 5%. 3. Does the project change the number of dwellings? If yes, qualifying works may be 5%.
4. Has the contractor been told about qualifying conditions? 5. Does the quotation itemise different rate elements separately? 6. Has the contractor confirmed in writing which rate they will apply and why?
7. Do you have evidence of any qualifying conditions (empty period, ESM specification, disability declaration)? 8. Are contract documents available before work starts? 9. Are you prepared to provide required declarations to the contractor?
10. Will invoices be itemised separately for each rate? 11. Have you agreed what happens if the contractor issues an incorrect rate? 12. Do you have a process to check invoices before payment against the agreed rates?
VATBuild is not affiliated with HMRC. References to HMRC publications are for informational purposes. Always consult a qualified tax adviser before making decisions about VAT on your project.
VATBuild works through this checklist with you at project setup — identifying which VAT reliefs may apply to your renovation, what evidence is needed, and what to agree with your contractor before signing. As invoices arrive, it checks each one against the agreed rate expectations and flags any discrepancy for immediate action.