Sunak announces 0% VAT on energy-saving materials

arty688

So from that can we assume they will be 0% if installed with solar?

gefnew

just install one panel and see if that counts.

Pulpdiction

That's what I want to know, I've ordered a battery, but the £900 VAT can go on 3 or 4 panels installed at the same time, rather than to the treasury.  So if this is possible I need to get on to my supplier....

94JDH

Pulpdiction said:

That's what I want to know, I've ordered a battery, but the £900 VAT can go on 3 or 4 panels installed at the same time, rather than to the treasury.  So if this is possible I need to get on to my supplier....

This should be possible as it the battery is then a supplement to the solar.

pinnks

The amending legislation is here The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 (legislation.gov.uk) and lists the different types of products.  The VAT Act has not been updated yet, so you would have difficulty slotting all this into it unless well-versed in such tasks

94JDH

pinnks said:

The amending legislation is here The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 (legislation.gov.uk) and lists the different types of products.  The VAT Act has not been updated yet, so you would have difficulty slotting all this into it unless well-versed in such tasks

Someone further up the thread had seen a comment on HMRC forums that implied with solar it is 0% VAT, without subject to normal VAT.
I've already had my total costs and paid my deposit, which specifies 0% VAT.

bones02

We got quoted for CWI mid-March and have them booked in to come around and install it in May. We haven't paid a deposit or anything so asked the company to send us a revise bill that didn't include the 5% VAT that they put on there. They informed us that only jobs quoted for after 1 Apr 22 would be eligible so we'd have to pay the VAT. The order states that it is for "supplies made on or after 1 April 2022 and before 1 April 2027" so my assumption is that most companies are just going to quote the same total amount and pocket the extra 5%!

94JDH

I'd certainly try them again and push for it from someone higher if possible- you've not had the work started prior to April and it makes no financial difference to the company other than what you've suggested.
Any company worth its salt would honour the reduction -if they didn't and it was me, I'd walk away on principal.

Pulpdiction

pinnks said:

The amending legislation is here The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 (legislation.gov.uk) and lists the different types of products.  The VAT Act has not been updated yet, so you would have difficulty slotting all this into it unless well-versed in such tasks

Can't see a specific mention of batteries, the list is:

Meaning of “energy-saving materials”

1.  For the purposes of this Group “energy saving materials” means any of the following—

(a)insulation for walls, floors, ceilings, roofs or lofts or for water tanks, pipes or other plumbing fittings;

(b)draught stripping for windows and doors;

(c)central heating system controls (including thermostatic radiator valves);

(d)hot water system controls;

(e)solar panels;

(f)wind turbines;

(g)water turbines;

(h)ground source heat pumps;

(i)air source heat pumps;

(j)micro combined heat and power units;

(k)boilers designed to be fuelled solely by wood, straw or similar vegetal matter.

pinnks

Indeed.  As mentioned by others, HMRC has state on its community forum that batteries as part of a new system installation will qualify but not as batteries on their own. VAT Solar Batteries - Community Forum - GOV.UK (hmrc.gov.uk)