timsk Posted July 1, 2020 Share Posted July 1, 2020 Heads up folks . . . Just heard on the news that Rishi Sunak, Chancellor of the Exchequer, is to make a big announcement next Wednesday in a bid to stimulate the economy. The strong hint is that he's going to make a cut in the 20% VAT rate. This may not happen but, for anyone out there on the cusp of putting in a large order (as we are for new windows and sliding doors) - you might want to hold off until after he's delivered his speech. After all, there's nothing worse than paying top dollar for something only to discover you could have saved quite a few bob by waiting for a day or two! Tim. 1 1 Link to comment Share on other sites More sharing options...
newhome Posted July 1, 2020 Share Posted July 1, 2020 You should get the VAT back on eligible materials on a new build so it doesn’t make much difference in the end, although it means that you have to shell out less VAT up front. It should be a good thing for materials that are not eligible for VAT reclaim or if you are renovating rather than doing a self build. Assuming that the retailers don’t adjust the core price to suit. When I did my self build I ended up paying 3 different VAT rates; 15%, 17.5% and 20%. Some retailers left their gross prices the same regardless of that however. I think Ikea may have done from memory. Link to comment Share on other sites More sharing options...
joth Posted July 1, 2020 Share Posted July 1, 2020 Full VAT, full fat renovator here. Please, don't get my hopes up of yet another VAT saving we'll somehow manage, through extreme ingenuity, to maneuver ourselves out of [Current 30% of our way through the spend, having just shelled out 13% of our total spend in the last 24 hours...] Link to comment Share on other sites More sharing options...
Temp Posted July 1, 2020 Share Posted July 1, 2020 If he drops the rate and you think suppliers might keep their prices the same it would be better to buy now than wait. Link to comment Share on other sites More sharing options...
timsk Posted July 2, 2020 Author Share Posted July 2, 2020 10 hours ago, Temp said: If he drops the rate and you think suppliers might keep their prices the same it would be better to buy now than wait. Hi Temp', Sorry, I don't quite follow - better for who? We have been quoted a price of circa £7k + VAT for new windows and doors, i.e. £8,400 inc. VAT. If we wait until the chancellor lowers VAT (assuming the rumour is correct) to, say 17%, then we'll only pay a total of £8,190 and save ourselves £210. We're also on the cusp of putting in orders for Hardie Plank cladding, decking materials and corrugated roofing sheets - all of which combined could save us over £400 if we hold off buying them until the new rate is announced. Yes, I accept the point that suppliers could up their rates, but most of the stuff we''ll be buying we have ex - VAT quotes for and so, IMO, it would be pretty underhand of them not to honour them. Or am I missing something? Tim. Link to comment Share on other sites More sharing options...
newhome Posted July 2, 2020 Share Posted July 2, 2020 16 minutes ago, timsk said: Sorry, I don't quite follow - better for who? We have been quoted a price of circa £7k + VAT for new windows and doors From experience previously it was retailers, so Ikea and the like, that sell their goods including VAT that didn’t change their prices immediately (they did that when the rate rose too). Businesses that quote excluding VAT such as your example will be unaffected (assuming they don’t increase their prices). So the ‘better for who’ comment meant if you buy from a retailer that keeps their prices the same as the VAT recovery will be less. Maybe that won’t happen this time anyway. It was over 10 years ago that the VAT rate dropped previously. On that occasion the reduced rate applied for 13 months. 2 Link to comment Share on other sites More sharing options...
joth Posted July 2, 2020 Share Posted July 2, 2020 Agree, majority of our quotes are ex VAT and indeed handled via a main contractor so it would be very difficult for them not to pass through the VAT savings. The one wrinkle on those is where we've already personally put down deposits inc VAT (mvhr, windows, internal doors) we won't see that tax back. Had our contractor paid deposit and not yet billed us it would be a different story. I'm sat on numerous other quotes wanting a deposit (bathrooms, kitchen, ashp) so will hold off on those for another few days now. The main place we'll be going to consumer retailers is kitchen appliances (Curreys, JLP etc) so aggressive online price comparison could yield some results. We won't need those until November or so. And some fresh furniture in the January sales ? All that said, bet he won't drop it. 2 Link to comment Share on other sites More sharing options...
timsk Posted July 2, 2020 Author Share Posted July 2, 2020 Aha, I get you now - thanks for the input everyone - and apologies in advance if I've got everyone's hopes up and they are dashed either by no cut in VAT or by some other economic incentive which offers no benefit to the likes of us! Tim. Link to comment Share on other sites More sharing options...
joth Posted July 8, 2020 Share Posted July 8, 2020 On 02/07/2020 at 15:34, timsk said: or by some other economic incentive which offers no benefit to the likes of us! Well we have 50% off meals out for August, so that's helpful! + VAT reduce to 5% on prepared meals , hotel accommodation, and theme parks + £5k voucher for insulation & energy saving measures (redeemable only via registered installers, so doubt I'll get this as we already tendered the work) + stamp duty removed for houses under £500k until March next year + various job creation schemes for under 24 year olds. 1 Link to comment Share on other sites More sharing options...
Ferdinand Posted July 8, 2020 Share Posted July 8, 2020 (edited) To me those look good except perhaps for the Stamp Duty, which will help relatively wealthy people.Should have capped it at 250k-300k. It is good that they are all short term, as it will force rapid spend. The Green Package for housing is good and I assume is targeted at renovation. It is good that there is a decent contribution from the owner, and that it is relatively limited at 5k for most people. I hope there is something to drive higher EPC grades from this. Edited July 8, 2020 by Ferdinand Link to comment Share on other sites More sharing options...
Triassic Posted July 8, 2020 Share Posted July 8, 2020 2 hours ago, joth said: redeemable only via registered installers, so doubt I'll get this as we already tendered the work) Tell them you Want the discount, or no deal! Link to comment Share on other sites More sharing options...
joth Posted July 8, 2020 Share Posted July 8, 2020 (edited) 2 hours ago, Triassic said: Tell them you Want the discount, or no deal! LOL to be clear, we tendered the work, signed a contract, and they've been working onsite since January (with a 3 month lockdown pause) so I think they've already very much got the deal. We're already over paying, with 20% VAT on the EWI just because of going through a main contractor; had we contracted this separately we'd be looking at just 5% VAT ... and now the £5k bung too doubles the potential savings. It would be tempting to think about, except I'm now busier than ever without thinking of taking this on (itself due to Covid cuts at my place of work). [I probably deserve to have my forum membership revoked for admitting any of this. Not very "self" build, am I... ] Edited July 8, 2020 by joth Link to comment Share on other sites More sharing options...
ProDave Posted July 8, 2020 Share Posted July 8, 2020 Well that was a damp squib. The only VAT you are going to save any time soon is accommodation and meals down to 5% vat for a limited time. Link to comment Share on other sites More sharing options...
newhome Posted July 8, 2020 Share Posted July 8, 2020 3 minutes ago, ProDave said: Well that was a damp squib. The only VAT you are going to save any time soon is accommodation and meals down to 5% vat for a limited time. To be honest people will purchase most other things anyway I imagine. It’s the sector most struggling that has the focus which is right in my view. Link to comment Share on other sites More sharing options...
ProDave Posted July 8, 2020 Share Posted July 8, 2020 2 hours ago, newhome said: To be honest people will purchase most other things anyway I imagine. It’s the sector most struggling that has the focus which is right in my view. Yes but as in so many other things, it COMPLETELY misses the small guest houses that are below the VAT threshold so it makes NO difference to them (other than people will expect the rates to be reduced) and only helps the larger establisments who are part of a large chain and probably less likely to need the help. Link to comment Share on other sites More sharing options...
Temp Posted July 8, 2020 Share Posted July 8, 2020 Humm... Can I persuade my local pub to cook a dozen lamb shanks to go in my freezer or are take outs banned from the scheme ? Link to comment Share on other sites More sharing options...
Reiver Posted July 8, 2020 Share Posted July 8, 2020 51 minutes ago, Temp said: Humm... Can I persuade my local pub to cook a dozen lamb shanks to go in my freezer or are take outs banned from the scheme ? I guess you could, as I think I'm right in saying that cooked take away food is liable to VAT? Link to comment Share on other sites More sharing options...
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