Can I reclaim VAT on a cable diversion cost?

27 March 2024
by Fiona Tompsett

I am about to commence a self build on the site of an existing barn, formerly part of the neighbouring farm and yard. There is a live electricity cable running under the site which used to supply the barn but now bypasses it and carries on to the yard. The groundworkers say they need this cable to be diverted and SSE have confirmed it cannot stay in place. VAT will be applied at standard rate to the diversion costs. Am I going to be able to reclaim this?

One Answer

  1. Erika Chaffey says:

    Hi Fiona,

    Thanks so much for getting in touch with your question. Unfortunately, this would be classed as a service and therefore the VAT charged for the works would not be eligible to be reclaimed.

    You can only claim for the materials used in the build and depending on how your build is managed will depend on the scale of the claim.

    You will be paying the standard VAT rate of 20% for materials purchased from builders merchants and other suppliers and this can be reclaimed.

    If you are employing a builder to do some or all of the works, the VAT rate charged will be 5% and this can also be reclaimed from HMRC.

    Best of luck with your plans,

    Kathy Tisdale (Build It’s VAT Reclaims expert)

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