ASHP for a flat - (A2A; grants)

[magnayn]

  On 17/06/2023 at 14:44, joth said:

 

To zero-rate the VAT the installation must be at least 40% of the total bill. So yes, on a zero rated supply & install,  instead of +20% VAT you'll pay minimum of 166% of the price of all the materials.

 

 

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Have you a reference to this?

 

I'm reading https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086 and my reading of it is that ASHP installation is 0 rated for VAT regardless of the proportions given to labour and capital equipment, but that you do need to have them invoiced together.

 

[joth]

  On 18/06/2023 at 08:50, magnayn said:

Have you a reference to this?

 

I'm reading https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086 and my reading of it is that ASHP installation is 0 rated for VAT regardless of the proportions given to labour and capital equipment, but that you do need to have them invoiced together.

 

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I was taking this from section "2.6 The 60% test" of that doc, and my attempt to decipher section 2.2. But reading it again I think section 2.1 says since April 22 (or May 23 in NI) the 60% test no longer applies. And from March 27 it will also no longer apply. Right?

What a convoluted document.