Jump to content

VAT abolished on solar panels insulation and heat pumps


Radian

Recommended Posts

11 hours 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.

 

Correct. Just money "for chums".

Link to comment
Share on other sites

So the BREXIT mentality machine is still running.

https://www.independent.co.uk/news/uk/politics/rishi-sunak-brexit-solar-panels-b2044304.html

 

But we have 5p off fossil fuels at the pumps, and most of us are getting £150 off council tax to help pay our bills.

 

I am starting to think that this government is not very good at finance.

Link to comment
Share on other sites

15 minutes ago, SteamyTea said:

...

I am starting to think that this government is not very good at finance.

 

But wonderful at finance is you need  (say) a billion to help a few people over the water, or a few million for your mates who decide they can supply PPE, and extremely good at spinning . 

 

Just for reference, ' Du Spinner' (you liar) is German derogatory slang for someone who makes things up 

Link to comment
Share on other sites

Not very good? That’s an understatement! Only profession I know where incompetence and failure is grounds for self praise and gloating.

I love Boris comment that P&O broke the rules so he (P&O boss) should resign …hmmm 🤔

Link to comment
Share on other sites

  • 2 months later...

I'm going round in circles here. Before the spring statement I had quotes for the supply and installation of solar PV. I had a price given to me that included VAT (although I don't know how much VAT - 5% or 20% that was) At that time there were fairly arcane rules dictating how much VAT was chargeable but the companies quoting me never checked my circumstances so wouldn't have been able to arrive at the quotes without making assumptions. My assumption is that it was VAT at 20%.

 

Now I'm getting fresh quotes after revising the spec (changed panel type to better fit space available) and I'm trying to compare the new price because it seems higher even though the company says they're slightly lower per Watt. With 20% or even 5% off I would expect a significantly lower price.

 

VAT now should be %0 on the materials, that much is clear. However, I'm seeing mixed messages about VAT on installation labour charges. Is that also zero rated now?

Edited by Radian
Link to comment
Share on other sites

@pocster has a current example of zero rate for supply and install. So if the price had been quoted to him back in March, he would expect to pay 20% less today, as indicated in the fanfare announcement by Chancellor Rishi Sunak when he spoke of "A family having a solar panel installed will see tax savings worth over £1,000 [on a typical £5000 system]"

 

And hmrc admin are handing out advice to businesses on the hmrc.gov.uk customerforums such as this exchange:

 

Quote
My company sells solar panel products. Now we use 20% vat. The government announced cutting VAT from five percent to zero upon installing energy-efficient systems such as solar panels,heating pumps from April 2022. I wonder if the vat rate is down to zero for solar products as well? many thanks.
Posted about a month ago by HMRC Admin 17 
 
Hi.
The Zero rating for energy saving materials involves the supply/installation of energy saving goods.

If solar panels are only supplied then the liability will be 20% but if they are supplied and installed then the liability would be
zero rated for both the goods and the installation of the goods.

Please see the guidance below:

Energy-saving materials and heating equipment (VAT Notice 708/6)   .

Thank you.

 

 

So there we are. zero rated for both the goods and the installation of the goods. Hope this clears it up 🙏

 

Link to comment
Share on other sites

23 hours ago, Radian said:

So there we are. zero rated for both the goods and the installation of the goods. Hope this clears it up 🙏

Yes I think that was pretty clear the issue is the stupid 20% VAT on the panels - why have that? Surely anyone buying a panel is going to be generating green energy and reducing demand on the grid supply so should get this VAT free.

 

I'm hoping as I'm a new build I can buy the PV kit and mainly self install and just put the parts through in my VAT reclaim in a few months.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...