Radian Posted March 23, 2022 Share Posted March 23, 2022 I had hoped VAT might be reduced on insulation... But now Rishi Sunak says homeowners will not have to pay VAT on solar panels, insulation and heat pumps for the next five years. https://www.standard.co.uk/homesandproperty/property-news/spring-statement-2022-rishi-sunak-energy-saving-vat-cut-b989964.html Link to comment Share on other sites More sharing options...
SteamyTea Posted March 23, 2022 Share Posted March 23, 2022 Is that instead of any other incentives. I hope so. Link to comment Share on other sites More sharing options...
cwr Posted March 23, 2022 Share Posted March 23, 2022 That article says vat on insulation is 5%. Anywhere I've been to buy insulation it's 20%.... Link to comment Share on other sites More sharing options...
ProDave Posted March 23, 2022 Share Posted March 23, 2022 I have not read the article, but I heard the speech live and it mentioned "installed heat pumps" and same for solar panels, so does this only men the 0% is supply and fit, or will you be able to buy one to DIY install at 0% VAT? Link to comment Share on other sites More sharing options...
GavH Posted March 23, 2022 Share Posted March 23, 2022 A speed read of the statement and it also only refers to installed EMS. Nothing about materials only. Link to comment Share on other sites More sharing options...
saveasteading Posted March 23, 2022 Share Posted March 23, 2022 Call me cynical but I expect this to require installation by an approved contractor or agency....again. Or a lot of paperwork and applications. But I agree with the principle. No VAT on insulation would be a very efficient fix for the reduction in energy use, and the nation would get a quick return. Link to comment Share on other sites More sharing options...
BMcN Posted March 24, 2022 Share Posted March 24, 2022 (edited) On 23/03/2022 at 15:58, ProDave said: I have not read the article, but I heard the speech live and it mentioned "installed heat pumps" and same for solar panels, so does this only men the 0% is supply and fit, or will you be able to buy one to DIY install at 0% VAT? The way it is worded it sounds like it's gli g from 5% to 0. In which case it will only be on installs? My understanding is that the materials need to make up for no more than 60% of the install cost to qualify for the 5% rate. Hence why we pay 20% to buy them for DIY? Edited March 24, 2022 by BMcN Link to comment Share on other sites More sharing options...
Gone West Posted March 25, 2022 Share Posted March 25, 2022 14 hours ago, BMcN said: My understanding is that the materials need to make up for no more than 60% of the install cost to qualify for the 5% rate. Hence why we pay 20% to buy them for DIY? AIUI as from 1st April 2022 the 60% rule no longer applies. Link to comment Share on other sites More sharing options...
joe90 Posted March 25, 2022 Share Posted March 25, 2022 This might make my DIY PV instal a Goer, just need confirmation of zero VAT on the kit itself. Link to comment Share on other sites More sharing options...
Conor Posted March 25, 2022 Share Posted March 25, 2022 10 minutes ago, joe90 said: This might make my DIY PV instal a Goer, just need confirmation of zero VAT on the kit itself. That's a good point. The majority of the cost of my install was the mounting kit and inverter. Panels £2k, everything else £3k. Link to comment Share on other sites More sharing options...
ProDave Posted March 25, 2022 Share Posted March 25, 2022 Sorry to be the bearer of bad news, but as I feared the 0% only applies to supply and fit. Sales of equipment only will still be 20% VAT https://www.bimblesolar.com/budget22 More jobs for the boys. They don't really want us to install green energy products. Don't shoot the messenger. 1 1 Link to comment Share on other sites More sharing options...
Radian Posted March 25, 2022 Author Share Posted March 25, 2022 5 minutes ago, ProDave said: Sorry to be the bearer of bad news, but as I feared the 0% only applies to supply and fit. Sales of equipment only will still be 20% VAT https://www.bimblesolar.com/budget22 More jobs for the boys. They don't really want us to install green energy products. Don't shoot the messenger. Does seem daft. If the old 60% rule no longer applies then might not a builder be contracted to supply the materials for a DIY install and charge a nominal sum for 'installation'? Link to comment Share on other sites More sharing options...
Carrerahill Posted March 25, 2022 Share Posted March 25, 2022 I have just had a look at a site for panels, and they claim it is on full systems only?!? So if I wanted to top up with 4-5 panels, I won't get the 5% break, however, I think all the companies will just bump up their price 5% and leave it as was claiming "rising costs" prices never come down! 1 Link to comment Share on other sites More sharing options...
ProDave Posted March 25, 2022 Share Posted March 25, 2022 1 minute ago, Radian said: Does seem daft. If the old 60% rule no longer applies then might not a builder be contracted to supply the materials for a DIY install and charge a nominal sum for 'installation'? If you can find such a VAT registered person to do that, it would probably work, to justify that he would surely have to do some "install" work, perhaps fix the rails to your roof and let you do the rest. but unless it is someone you know, I doubt many would be wanting to put a substantial sum through their books with all the VAT paperwork for little income. Link to comment Share on other sites More sharing options...
joe90 Posted March 25, 2022 Share Posted March 25, 2022 I do know a lecky that does solar as well, will give him a call if I decide to go ahead, might be worth a “bung” 🤷♂️ Link to comment Share on other sites More sharing options...
Radian Posted March 25, 2022 Author Share Posted March 25, 2022 9 minutes ago, ProDave said: If you can find such a VAT registered person to do that, it would probably work, to justify that he would surely have to do some "install" work, perhaps fix the rails to your roof and let you do the rest. but unless it is someone you know, I doubt many would be wanting to put a substantial sum through their books with all the VAT paperwork for little income. What I was thinking is that there may be some flexibility for self-builders who contract out certain elements of their builds. A good relationship with a builder might lead to some sort of arrangement that is of some financial benefit to both parties. I'm trying (and failing) to get my head around the reason for the materials themselves not to be tempoarily zero rated like children's clothes, books and newspapers. Link to comment Share on other sites More sharing options...
ProDave Posted March 25, 2022 Share Posted March 25, 2022 2 minutes ago, Radian said: I'm trying (and failing) to get my head around the reason for the materials themselves not to be tempoarily zero rated like children's clothes, books and newspapers. It is obviously NOT about maximising the amount of green energy products installed but all about prolonging schemes like MCS etc and trying to make it so DIY is impossible. 1 Link to comment Share on other sites More sharing options...
joe90 Posted March 25, 2022 Share Posted March 25, 2022 15 minutes ago, ProDave said: and trying to make it so DIY is impossible. If loft insulation was zero so many more people would install it IMO. Link to comment Share on other sites More sharing options...
Radian Posted March 25, 2022 Author Share Posted March 25, 2022 17 minutes ago, ProDave said: It is obviously NOT about maximising the amount of green energy products installed but all about prolonging schemes like MCS etc and trying to make it so DIY is impossible. This keeps on rearing its ugly head. Perhaps something like the Good Law Project should get involved in investigating the various schemes and their funding. Link to comment Share on other sites More sharing options...
saveasteading Posted March 25, 2022 Share Posted March 25, 2022 1 hour ago, ProDave said: as I feared the 0% only applies to supply and fit. Sales of equipment only will still be 20% VAT I refer you to the answer I gave earlier. On 23/03/2022 at 15:26, saveasteading said: Call me cynical but I expect this to require installation by an approved contractor or agency....again. So they will again spend Millions of our money on administering the schemes, and hardly anything in grants. It can no longer be ignorance and must be cynical (followed by a photo op of putting petrol into a borrowed small car) Link to comment Share on other sites More sharing options...
Radian Posted March 25, 2022 Author Share Posted March 25, 2022 3 hours ago, joe90 said: If loft insulation was zero so many more people would install it IMO. I see it also includes draught excluding strips -- who the ?*!# is going to hire a trade to install those? 1 Link to comment Share on other sites More sharing options...
joth Posted March 25, 2022 Share Posted March 25, 2022 2 hours ago, saveasteading said: On 23/03/2022 at 16:26, saveasteading said: Call me cynical but I expect this to require installation by an approved contractor or agency....again. So they will again spend Millions of our money on administering the schemes, and hardly anything in grants. It can no longer be ignorance and must be cynical (followed by a photo op of putting petrol into a borrowed small car Yes and what's more, the supply and fit must be a standalone job, not part of a bigger job such as renewing a roof (as maybe required to install solar) or lining a building with airtight membrane. So doing a serious retrofit like to EnerPhit standard will still all be 20% VAT if instructed through a single main contractor, or if done DIY. The only way to get the savings is to pay lots of individual trades separately and risk the work not joining up, which is especially bad if EWI is not joined into other improvement work correctly (for example) allowing damp in. Shame, it would have saved us about £8000 in vat if this was workable. Link to comment Share on other sites More sharing options...
Rob99 Posted March 25, 2022 Share Posted March 25, 2022 Yet another example, I'm afraid, of a headline grabbing announcement which fails to deliver when you look closer into the detail. 1 Link to comment Share on other sites More sharing options...
saveasteading Posted March 25, 2022 Share Posted March 25, 2022 26 minutes ago, Rob99 said: headline grabbing announcement anybody got the daily mail take on it? Link to comment Share on other sites More sharing options...
ProDave Posted March 25, 2022 Share Posted March 25, 2022 5 minutes ago, saveasteading said: anybody got the daily mail take on it? you asked. https://www.dailymail.co.uk/news/article-10643903/Rishi-Sunak-says-thanks-Brexit-able-axe-VAT-solar-panels.html "Conservative MP Anthony Browne said: 'As energy bills rise, it was welcome to see the Chancellor recognise the important role energy efficiency can play by cutting VAT on energy saving materials such as solar panels, insulation and heat pumps to 0%." Nope, he has NOT cut the VAT on "materials" he has cut the VAT on supply and fit. 1 Link to comment Share on other sites More sharing options...
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