The VAT431C scheme lets owner-occupiers who have converted a qualifying non-residential building into a home reclaim VAT on goods they bought for the project. Contractor services on qualifying conversions should be charged at the reduced rate of 5% — not 20% — and that 5% is also reclaimable under VAT431C. The claim must be submitted within 6 months of the completion certificate being issued.
That is a typical VAT431C reclaim value on a barn or commercial-to-residential conversion — the difference between an accurate claim and a poorly organised one. HMRC gives you one shot: errors or late submission mean that money is gone.
Building work by a VAT-registered contractor on a qualifying conversion qualifies for the 5% reduced rate under HMRC Notice 708. The 5% is fully reclaimable via VAT431C.
If your contractor charged 20% on services that should be 5%, that is an overcharge. The excess cannot simply be reclaimed — you need to ask the contractor for a corrected invoice.
Materials you buy direct from merchants are correctly charged at 20% standard rate. That full 20% is reclaimable via VAT431C, provided the materials are incorporated into the building.
Fitted carpets, white goods, furniture, tools, consumables and professional fees (architects, surveyors, structural engineers) cannot be included in a VAT431C 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 conversions: it identifies which contractor invoices should show 5% (and flags those incorrectly charged at 20%), which materials purchases are reclaimable, and which items fall outside the VAT431C scheme entirely. The result is a structured claim summary with every line item explained.