If you’re having to undertake works to your home to aid your living due to a disability, you may be able to claim VAT relief on the cost of the works; offering you significant savings.
What is VAT relief?
Simply put, the HMRC have outlined a range of works and improvements to homes which are deemed to be VAT-free, meaning your contractors will not need to charge you VAT at all.
It’s important to note, however, that this is not a refund process, but an exemption from paying VAT at the outset. It’s therefore vital to ensure that works are appropriate in order to qualify for the exemption, and that your building contractor is competent and knowledgeable in order to ensure full compliance to the process.
Qualifying for VAT relief
In order to qualify for VAT relief on these projects, you must be deemed ‘chronically sick or disabled’ as defined by HMRC. This doesn’t mean that you will necessarily be registered disabled, or in receipt of related benefits. HMRC classifies chronically sick or disabled as:
- “Suffering physical or mental impairment which has a long term and substantial adverse effect upon your ability to carry out everyday activities
- Suffering a condition which the medical profession treats as a chronic sickness (that’s a longterm health condition)”
HMRC states clearly that the above classification does not relate to temporary conditions or decreased mobility specifically linked to old age.
As VAT relief for these works comes via self-certification, HMRC will not advise individual cases in terms of eligibility. Therefore, you should seek medical advice (documentation of which should be retained) if you’re unsure as to your qualification.
Any qualifying works must be carried out within a private residence where you normally reside. It doesn’t not necessarily need to be owned by you, and could even be a close relative’s, but must be your predominant residence. For the purposes of qualifying external works such as ramps, ‘your home’ also includes sheds and outside spaces.
Eligibility Declarations
As the exemption from VAT is self-certified, and not a refund, it falls to the client and contractor to demonstrate qualification of the works and disabled user. Typically, contractors will ask you to complete a simple eligibility declaration, which they will retain alongside their financial records to provide to HMRC. HMRC’s eligibility declaration form can be found here.
If you are having multiple projects completed to aid your mobility, you will need to complete a form for each individual supplier.
Eligible VAT-free projects
There are a range of building projects and improvements that you can undertake to your home which qualify for VAT relief under this scheme. Typical works include:
- Ramps
- Doorway, passage and path widening
- Bathrooms, wet rooms, washrooms and toilets
- Lifts
- Associated/enabling works
Ramps, doorways and passages
Having a ramp built either within or into your home qualifies for VAT exemption under this scheme.
It is important to note though, that decreasing the levels of doorway thresholds or the replacement of floor coverings is ineligible.
The widening of doorways or passages, and even rooms where you must pass through to reach other rooms is eligible for you not to have to pat VAT. This also includes the widening of paths outdoors within your garden.
However, creating new doorways, passages or indeed rooms does not qualify for VAT exemption. Nor does creating new entrances or replacing windows with doors, new paths or driveways.
Infinity Home Services’ experienced building and external works teams can assist with any such works.
Bathrooms, wet rooms, washrooms and toilets
VAT exemption applies to a range of works to bathrooms to aid accessibility. Such works include having a new wet room, bathroom, washroom or toilet installed or existing facilities extended or adapted to improve access.
Works may include:
- Having a bath removed and replaced with a shower or walk-in bath if, because of your disability, you have difficulty getting in and out of a traditional bath
- Having a bathroom installed on the ground floor if, because of your disability, you’re not able to get upstairs
- Altering an existing bathroom to allow wheelchair access around the room.
Infinity Home Services’ experience building works teams can assist in such works, and sister company Infinity Wet Rooms can offer full turnkey support with the provision of wet rooms designed to enhance mobility.
Lifts
The installation of a lift to improve mobility is also exempt from paying VAT, as is ongoing repair and maintenance of the lift in the future.
Associated / Enabling Works
Many of the projects outlined already often encompass more associated works to allow their completion than simply the single measures mentioned. Such enabling or associated works will also benefit from the VAT relief. Examples cited by HMRC include:
- Having a doorway widened the supply and fitting of a wider door frame and door, removal of the bricks and mortar and the restoration of the damaged decor can all be VAT-free
- Having your bathroom adapted to install a walk-in shower, the replacement of any porcelain goods that need taking out as a result of the new installation and any necessary re-tiling can be VAT-free
- Whilst having an extension to provide a downstairs bathroom, the VAT-free work can include the preparation of footings (including ground levelling), connection to services (water, gas, electricity and drainage) and the restoration of the immediate decor
Building materials and goods
If you are using a competent professional contractor to undertake your building project, all materials used within the eligible works will also be VAT-free. Assuming that they are VAT-registered, the contractor will reclaim the VAT paid for materials and goods, with no charge to you for VAT.
If you are using a contractor who’s not VAT registered, they are of course, unable to reclaim the VAT for the materials used. In this case, you will need your contractor to arrange for the materials directly to you; on a VAT-free basis from a VAT registered supplier. In this situation, you will need to provide again an eligibility declaration to the materials supplier to ensure compliance.
Certain fixtures and fittings which are designed solely for disabled people are also VAT-free at point of purchase. More information can be sought from HMRC here.
Ineligible works
The exemption from VAT applies only to the categories of work listed above. Whilst other projects around your home may benefit your disability or impairment, it will not be able to benefit from the VAT-free status. Such schemes might include:
- Construction of a downstairs bedroom or adaptation of an existing room to form a bedroom
- Installation or upgrade of a domestic heating system, for example, boilers and radiators
- Replacement windows
- New kitchens
- Extension or adaptation of the property to provide a conservatory, carer’s room, office or living room
Reduced-rate VAT for mobility aids for older people
For those who are over 60, but not disabled or chronically sick, some mobility aids will attract a lower (5%) rate of VAT. Such aids include grab rails, ramps, stair lifts, bath lifts, built-in shower seats or showers containing built-in shower seats and walk-in baths with sealable doors. Further information can be found here.
We can help
Infinity Home Services, and our sister company Infinity Wet Rooms can provide complete support for all mobility-enhancing works. Call now on 0800 148 8088 or contact using the form below for a no-obligation consultation on how we can help you.