VAT rate on heating controls

Deladuro

HI folks
I'm probably being a bit thick and missing some vital information, but can anyone explain why the VAT rate added to central heating controls (I'm looking at a Worcester DT10RF optimiser to buy online) appears to be 20% rather than 5%.
Thanks

Nilrem

Standard tax rate for the part, rather than the lwer tax rate on electricity and gas as used for heating?

I suspect you'll find the tax rate for a boiler and other parts of the heating system also taxed at 20%.

southcoastrgi

because merchants don't give a reduced rate, if your installer (if you had one) was to go & buy it then he would be charged 20% & in theory only charge you 5% but it never happens because it's a major PITA in paperwork to seperate things up, another bright idea from the government that was never gonna work, because the poor installer could be out of pocket 15% for upto three months

gas4you

I have heard that HMRC are challenging the 5% rate for heating controls these days.

Rockingit

The VAT rate of 5% is for the fuel source, not the components from A to B. Otherwise, ALL electrical work would have to be charged at 5%, for example, and it would be a major PITA for plumbers etc.

southcoastrgi

Rockingit wrote: »

The VAT rate of 5% is for the fuel source, not the components from A to B. Otherwise, ALL electrical work would have to be charged at 5%, for example, and it would be a major PITA for plumbers etc.

not correct energy saving controls are supposed to be charged to the end user @ 5% vat, however for the reasons i have already stated it is very rairly done

Rockingit

southcoastrgi wrote: »

not correct energy saving controls are supposed to be charged to the end user @ 5% vat, however for the reasons i have already stated it is very rairly done

A (simple) thermostat isn't an energy saving control, though. It's an operational device (IMO).

southcoastrgi

here you go

clicky

Rockingit

southcoastrgi wrote: »

here you go

clicky

Well, every day's a school day! But...from an electricians perspective, 'control' is exceptionally open ended!

Plumbers_Shop_Lee

Heating controls can only be charged at 5% vat when installed. So the actual supply of the item in the first instance incurs a 20% rate. In addition to this the controls don't qualify if they are being installed at the same time as the boiler as they are classed as a necessary part of the boiler change and not an energy saving upgrade.