VAT DIY builder decision in Mort

Key points

• The taxpayer constructed a new dwelling for his private use and submitted a VAT claim to HMRC under the DIY scheme.
• The tribunal ruled that for much of the VAT in dispute the materials were the predominant element of the supply and the builders were correct to charge VAT on the entire job.
• Usually the scheme does not cover the builder’s services.
• The tribunal said HMRC should have ‘resolved the matter without the need for tribunal proceedings’.

Tax tribunal cases about do-it-yourself (DIY) claims for self-builders rarely whet the taste buds in the same way as a spicy curry at an exotic Asian restaurant. In most cases they focus on minor issues raised by agitated claimants – is a fitted coat hanger classed as a building material – and are usually easy wins for HMRC. The claimants often represent themselves at the hearing and their...