In a recent case HMRC denied VAT relief for a DIY builder.  HMRC’s case appeared plausable albeit subjective.  The taxpayer appealed and the first tier tribunal found in favour of the taxpayer, granting VAT relief on the cost of building a new house.

We report this case not for the technical detail of the VAT point, but as a reminder that HMRC can be (often are) wrong.  If you have any dealings with HMRC that don’t seem right, always take professional advice.  It may be that appeal could go in your favour and be very worthwhile.

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.