VAT on energy saving measures - confused by invoice.

Tothebeach

We’ve just received an invoice for cavity wall insulation and loft insulation.  

As expected the cavity wall work has been invoiced at 0% but the loft insulation has been invoiced with 20% VAT added.

I’m sure this is a mistake but I wondered if perhaps I’ve misunderstood something.

I’ve googled and checked the government website and as far as I can see the whole job should have been zero rated.

I wondered if maybe the materials were zero rated but labour costs still incurred VAT (as most of the information I can see refers to energy saving materials and doesn’t actually specify installation costs) but this still wouldn’t account for how we’ve been invoiced.

Any advice would be greatly appreciated.

Mutton_Geoff

Tothebeach said:

Any advice would be greatly appreciated.

What do the firm raising the invoice say?

Tothebeach

No reply from them yet.

BUFF

afaik the rules changed in April 2022 & currently it should be zero-rated (they removed the 60% test)
https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086#installations-of-energy-saving-materials

Tothebeach

Thanks Buff - I’ve now had an email from them and it seems someone ticked the wrong box when producing the invoice.

Appreciate your help.