VAT rate on domestic boiler repair 20% or 5%?

tootsy_collins

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

spiro

Why do you think it should be 5%? You don't say what on the HMRC page makes you think that.

unforeseen

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

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%

tootsy_collins

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

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

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