GET IN TOUCH
GET TO KNOW
61 Friar Gate Derby DE1 1DJ
Registered to carry out audit work Association of Chartered Certified Accountants.
www.auditregister.org.uk under number 8011438
An economic operator registration and identification (EORI) number will be needed for UK businesses to be able to continue to trade with the EU after the UK leaves the EU.
If there is a no-deal Brexit
In the event that the UK leaves the EU without a deal, an EORI number that starts with GB will be needed to move goods in and out of the UK.
An EORI number is not needed if goods are only moved between Northern Ireland and Ireland. However, one is required for imports and exports that move directly between Ireland and Great Britain without going through Northern Ireland.
A business that already has an EORI number starting with GB can continue to use it. It will be 12 digits long and include the VAT number where the business is registered for VAT.
Where a business is registered for VAT, HMRC send out EORI numbers automatically. It is advisable to keep the letter and a separate note of the number.
Businesses not registered for VAT
Businesses that are not registered for VAT will not receive an EORI number automatically. They will therefore need to apply for one if they wish to continue to trade with the EU post-Brexit.
This is a simple process and can be done online on the Gov.uk website (see www.gov.uk/eori). Applicants will usually receive the number immediately; although it may take up to five working days if HMRC need to undertake more checks.
Forgotten or misplaced EORI numbers
A business which has lost or misplaced its EORI number can contact the EORI helpline online using the contact form on the Gov.uk website at www.gov.uk/eori.
EU EORI number
A business that wishes to trade with an EU country will also need an EU EORI number starting with the country code of the country that they wish to trade with. This should be obtained from the Customs authority of the EU country that the business will first trade with post Brexit.
If you build your own house or convert an existing property into a home, you may be eligible to apply for a VAT refund on building materials and services. You do not need to be VAT registered to claim a refund.
Refunds can be claimed in respect of building materials that are incorporated into the building and which cannot be removed without tools or without damaging the building. Refunds are available for materials used to build both new homes and for certain conversions.
A new home will qualify if it is separate and self-contained and you build it for you and your family to live in. The property must not be used for business purposes, although you are permitted to use one room as a home office. Conversions will qualify if the property was previously used for non-residential purposes and is converted for residential use.
Conversions of residential building will only qualify if they have not been lived in for at least 10 years.
Where you use a builder, the builder’s services will normally be zero-rated where they work on a new home. However, you can claim a refund for VAT charged by a builder working on a conversion.
What does not qualify?
Refunds are not available in respect of:
• materials or services on which no VAT is payable because they are zero-rated or exempt;
• professional fees, such as architects’ fees or surveyors’ fees;
• costs of hiring machinery or equipment;
• building materials which are not permanently attached to or part of the building;
• fitted furniture, some gas and electrical appliances, carpets and garden ornaments.
A refund is also denied if the building is not capable of being sold separately, for example, as a result of planning restrictions.
How to claim
The claim is made on form 431NB where it relates to a new build and on form 431 where it relates to a conversion. The forms are available on the Gov.uk website. The claim must be made within three months of the date on which the building work was completed.
You must include all the relevant supporting documentation with your claim, such as valid VAT invoices to support the amount claimed. The refund will normally be issued within 30 days of making the claim.
Partner note: www.gov.uk/vat-building-new-home/eligibility.