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  • FIRST POST
    • tootsy_collins
    • By tootsy_collins 15th Oct 16, 1:55 PM
    • 3Posts
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    tootsy_collins
    VAT rate on domestic boiler repair 20% or 5%?
    • #1
    • 15th Oct 16, 1:55 PM
    VAT rate on domestic boiler repair 20% or 5%? 15th Oct 16 at 1:55 PM
    Hi there -

    Just had two guys out who did a good job in replacing the radio receiver to the boiler, thereby fixing my central heating. Great.

    However - the bill says 'VAT @ 20%' - I looked this up and I actually think it's 5% - can anyone confirm I'm correct please?!

    gov.uk/guidance/rates-of-vat-on-different-goods-and-services


    Thanks,

    James
Page 1
    • spiro
    • By spiro 15th Oct 16, 2:23 PM
    • 5,681 Posts
    • 2,716 Thanks
    spiro
    • #2
    • 15th Oct 16, 2:23 PM
    • #2
    • 15th Oct 16, 2:23 PM
    Why do you think it should be 5%? You don't say what on the HMRC page makes you think that.
    IT Consultant in the utilities industry specialising in the retail electricity market.

    4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).
    • unforeseen
    • By unforeseen 15th Oct 16, 2:33 PM
    • 830 Posts
    • 1,095 Thanks
    unforeseen
    • #3
    • 15th Oct 16, 2:33 PM
    • #3
    • 15th Oct 16, 2:33 PM
    VAT Notice 708/6 para 2.6 has the installation of CH controls at the reduced rate of 5%

    Summarised at https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services
    The installation, repair and maintenance of a boiler, radiators, pipework and controls forming a central heating system (including micro combined heat and power systems)
    • matelodave
    • By matelodave 15th Oct 16, 3:07 PM
    • 2,591 Posts
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    matelodave
    • #4
    • 15th Oct 16, 3:07 PM
    • #4
    • 15th Oct 16, 3:07 PM
    Check it very carefully, para 2.6 is different from para 3.3

    2.6 refers to the installation of controls in a domestic premises, not repairs to baoilers whereas par 3.3 has a wider scope because it's for grant funded installations (your quote above is from para 3.3).

    I'm afraid you are in for 20%
    Love makes the world go round - beer make it go round even faster
    • tootsy_collins
    • By tootsy_collins 15th Oct 16, 4:07 PM
    • 3 Posts
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    tootsy_collins
    • #5
    • 15th Oct 16, 4:07 PM
    • #5
    • 15th Oct 16, 4:07 PM
    Yes exactly, and therein lies my problem. I saw there was a slight caveat regarding 'grant-funded installations' which confused me.

    Technically what they did was replace the radio-frequency thermostat that controls the boiler, so I think that falls under this category:

    "Energy-saving materials installed in dwellings and buildings used for a relevant residential purpose

    Central heating and hot water controls 5% VAT Notice 708/6"
    • tootsy_collins
    • By tootsy_collins 15th Oct 16, 4:11 PM
    • 3 Posts
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    tootsy_collins
    • #6
    • 15th Oct 16, 4:11 PM
    • #6
    • 15th Oct 16, 4:11 PM
    Yeah it's a bit confusing to be honest.

    What they did was replace the RF-thermostat that controls the boiler.

    "Energy-saving materials installed in dwellings and buildings used for a relevant residential purpose

    Central heating and hot water controls 5% VAT Notice 708/6
    "

    The call-out charge was £90, and the other number on there is £74.04 (presumably the cost of the Drayton+2RF unit). Then 20% VAT is applied to the sum of those numbers to give £196.84.

    It'll only be a few quid difference but perhaps the lower 5% rate of VAT should have been applied to the actual item of equipment installed? What do you think?

    Thanks people!
    • matelodave
    • By matelodave 15th Oct 16, 5:39 PM
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    matelodave
    • #7
    • 15th Oct 16, 5:39 PM
    • #7
    • 15th Oct 16, 5:39 PM
    It's quite complex, but they'll allow 5% for the installation of energy saving controls but not for repairing them. Daft IMO

    I had a complete heat pump system installed but I had to get it all done by one contractor to gain the 5% vat concession.

    Although the plumber was a bit cheaper regarding the heating he would have had to charge me 17.5% (the vat rate at the time) on his bit and the heat-pump installer 5% on his bit. So it was worth paying for the xetra cost of having a single installer to save 12.5% vat
    Love makes the world go round - beer make it go round even faster
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