On a VAT431C claim you can reclaim: the 5% VAT on contractor building services, and the 20% VAT on building materials you purchased directly and incorporated into the structure. You cannot reclaim VAT on professional fees (architect, surveyor, engineer), fitted carpets, white goods, furniture, tools, or any materials not fixed to the building. The distinction between 'building materials' and 'fittings or furnishings' is where most VAT431C claims lose money.
That is a typical amount lost by VAT431C claimants who either over-claim (including ineligible items, risking HMRC rejection) or under-claim (missing eligible material purchases that were not carefully tracked).
All contractor services on the conversion: groundworks, structural, roofing, glazing, plumbing, electrical, plastering, joinery, decoration. The 5% VAT on these is reclaimable.
Bricks, blocks, timber, insulation, roofing materials, pipework, cable, plasterboard, tiles (floor and wall), sanitaryware, doors, windows — materials incorporated into the fabric of the building. The 20% VAT on these is reclaimable.
Architect fees, structural engineer fees, planning consultant fees, quantity surveyor fees, party wall surveyor fees. These are standard-rated services that are not within the scope of the VAT431C scheme.
HMRC specifically excludes fitted carpets and most floor coverings from the DIY scheme, even though they are 'fitted'. Hard floor tiles are claimable — carpets are not.
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 applies HMRC's full definition of eligible items when reviewing your invoices. It separates claimable line items from excluded ones on every invoice — flagging professional fees, carpets, white goods and furniture for exclusion, and identifying which material purchases are eligible for inclusion in your VAT431C claim.