VAT431C DIY housebuilders scheme
VAT431C lets an owner-occupier reclaim materials VAT on a qualifying barn conversion. Since 5 December 2023 the claim is digital with a six-month window from the completion certificate date.
What the scheme reclaims
VAT431C reclaims the VAT element on materials used in a qualifying conversion of a non-residential building (such as a barn) into a dwelling for owner occupation. Labour at 5% is recovered by the contractor at point of invoice; you cannot reclaim labour through VAT431C.
Worked reclaim example
Worked example: £450,000 conversion, of which £180,000 is materials (40%, typical for barn conversion). Materials VAT at 20% = £30,000 reclaimable through VAT431C, less any items HMRC excludes (white goods, carpets, garden equipment), which typically takes £4,000-£8,000 off the reclaim total.
The digital window
The digital claim portal has been live since 5 December 2023. The six-month clock runs from the date the local authority issues the completion certificate. Late claims are routinely rejected.