Temp Posted May 8, 2019 Share Posted May 8, 2019 Couldn't make it up.... https://inews.co.uk/news/environment/renewable-energy-vat-increase-solar-panels-battery-storage/ Environment Renewable energy: Proposals to add full 20% VAT to solar panels and battery storage The changes are set to come in from 1 October HMRC have introduced higher VAT rates for the installation of some renewable and sustainable energy sources In brief HMRC has proposed a price hike for a number of sustainable energy sources Prices would be higher, going from 5% to 20% VAT HM Revenue and Customs (HMRC) is set to introduce higher VAT rates for the installation of a number of renewable and sustainable energy sources, such as solar panels and biomass boilers. The government body responsible for collecting taxes, announced a hike in rates from 5 per cent to 20 per cent for machinery costs when the technology costs of installation are above 60 per cent. Previously, households that chose to install solar photovoltaic (PV), battery storage or biomass boilers, benefited from a reduced VAT rate of 5 per cent, however their material costs are higher than the new limit. The changes are set to come in from 1 October. Exceptions to the legislation, for which the 5 per cent VAT will still be available, are for residential installations for recipients aged 60 or over or receiving certain benefits, and for housing associations. 1 Link to comment Share on other sites More sharing options...
Onoff Posted May 9, 2019 Share Posted May 9, 2019 What have I said? Many times! FiT rate reduction, reducing the hybrid/EV subsidy. Governments don't want the revenue loss. Link to comment Share on other sites More sharing options...
newhome Posted May 9, 2019 Share Posted May 9, 2019 Still VAT reclaimable on a new build so either get them in then or wait until you are 60! ? Link to comment Share on other sites More sharing options...
ToughButterCup Posted May 9, 2019 Share Posted May 9, 2019 6 hours ago, Temp said: [...] Exceptions to the legislation,[...] are [...] for recipients aged 60 or over [...] Pheeeeew, only just made it. ? Link to comment Share on other sites More sharing options...
Onoff Posted May 9, 2019 Share Posted May 9, 2019 18 minutes ago, newhome said: Still VAT reclaimable on a new build so either get them in then or wait until you are 60! ? Not for long I'll bet. Why encourage self builders to build? The more who do it to a high standard, the more revenue lost as they're more economic (for the householder) to run. Link to comment Share on other sites More sharing options...
newhome Posted May 9, 2019 Share Posted May 9, 2019 39 minutes ago, Onoff said: Not for long I'll bet. Why encourage self builders to build? The VAT rules are to put self builders in the same position as if they had bought a home from a developer. It would take a brave government to change that, plus I imagine many more people would look at ways of beating the inequality by using more VAT contracted labour etc. That said, changing the VAT regulations during my build was something that I was concerned about as I stood to lose more than 25k. As for concessions for the over 60s, well hmm! Why should over 60s retain the concession? Mind you I’m still expecting there to be a means tested state pension when I eventually get to retirement age although ironically the more I make provision not to need the state pension the less likely I am to get one if that happens. Link to comment Share on other sites More sharing options...
Ferdinand Posted May 9, 2019 Share Posted May 9, 2019 (edited) 1 hour ago, AnonymousBosch said: Pheeeeew, only just made it. ? That seems a bit weird. Aren’t you pensioners supposed to be the rich ones who have filched all the money, and now spending all your time on cruises? As for the Housing Association concession, that is probably down to HAs being horribly complicated in VAT terms. Ferdinand Edited May 9, 2019 by Ferdinand Link to comment Share on other sites More sharing options...
newhome Posted May 9, 2019 Share Posted May 9, 2019 3 minutes ago, Ferdinand said: Aren’t you pensioners supposed to be the rich ones who have filched all the money, and now spending all your time on cruises? Many people won’t even be retired at 60 these days so 60 seems odd. Let’s give a concession to people still working potentially earning the highest salary of their career ? Link to comment Share on other sites More sharing options...
Ferdinand Posted May 9, 2019 Share Posted May 9, 2019 (edited) What is the machinery cost above 60% thing about? Are they trying to make it hard for those installs with low labour costs, which is presumably DIY non-FIT ones? Sop to the industry? Edited May 9, 2019 by Ferdinand Link to comment Share on other sites More sharing options...
Jeremy Harris Posted May 9, 2019 Share Posted May 9, 2019 1 minute ago, newhome said: Many people won’t even be retired at 60 these days so 60 seems odd. Let’s give a concession to people still working potentially earning the highest salary of their career ? Very true. The state pension isn't paid until you're 65, and is set to change to 68 between 2044 and 2046 (and that's under review). Although I get the state pension now, I think it really should be means tested. I don't really need it, and a large part of it just goes in income tax, anyway, and it seems far more sensible for the state pension to just be a safety net for those that, for whatever reason, don't have any other pension provision. The latter isn't just from lack of foresight, either. A friend of mine lost his pension in the Mirror Group pensions scam, so had to get another job driving buses when he retired from the print works. Link to comment Share on other sites More sharing options...
ToughButterCup Posted May 9, 2019 Share Posted May 9, 2019 55 minutes ago, newhome said: [...] As for concessions for the over 60s, well hmm! Why should over 60s retain the concession? [...] You sayin' we ain't wurf it? Link to comment Share on other sites More sharing options...
ToughButterCup Posted May 9, 2019 Share Posted May 9, 2019 36 minutes ago, JSHarris said: [...] A friend of mine lost his pension in the Mirror Group pensions scam, so had to get another job driving buses when he retired from the print works. If ever there was something to get angry about, really really angry..... Link to comment Share on other sites More sharing options...
newhome Posted May 9, 2019 Share Posted May 9, 2019 6 minutes ago, AnonymousBosch said: You sayin' we ain't wurf it? Everyone’s worth it ?. Link to comment Share on other sites More sharing options...
ToughButterCup Posted May 9, 2019 Share Posted May 9, 2019 51 minutes ago, Ferdinand said: [...] Aren’t you pensioners supposed to be the rich ones who have filched all the money, and now spending all your time on cruises? [...] True for some. But, frankly, thank God I don't have enough money for a cruise. Link to comment Share on other sites More sharing options...
ProDave Posted May 9, 2019 Share Posted May 9, 2019 14 minutes ago, AnonymousBosch said: If ever there was something to get angry about, really really angry..... A similar thing happened to those that stayed in UKAEA until it got privatised into AEA Technology. The pension scandal there has not lost them all their pension, only about half of it. I baled out and kept my UKAEA pension intact. Link to comment Share on other sites More sharing options...
Jeremy Harris Posted May 9, 2019 Share Posted May 9, 2019 4 minutes ago, ProDave said: I baled out and kept my UKAEA pension intact. Funnily enough, I cashed my UKAEA pension in a year or so ago, as it was so small that I opted to just take it as a lump sum. Full marks to them for tracking me down, though, as I'd forgotten all about it, and I've moved house at least 10 times since I worked for UKAEA. Link to comment Share on other sites More sharing options...
scottishjohn Posted May 9, 2019 Share Posted May 9, 2019 1 hour ago, JSHarris said: Although I get the state pension now, I think it really should be means tested. I don't really need it, and a large part of it just goes in income tax, anyway, and it seems far more sensible for the state pension to just be a safety net for those that, for whatever reason, don't have any other pension provision. The latter isn't just from lack of foresight, either. Sorry cannot agree with that in way I already have paid tax and paid for this pension as you say you get taxed on it anyway the safety net should be the income level at which you start paying tax . If no other income you don,t pay tax on state pension +lots of other things you can get as well and those that could have and not bothered to provide for their retirement ,just spent it all --get no sympathy from me . now we have mandatory work place pensions as well --which should have happened a long time ago -- but as an employer I find that along with NI contributions is a big cost on employing staff -- hence so may self employed or fixed term contract workers and don,t get me started on uber drivers and other "gig economy workers". who pay sod all tax to anyone ,but will expect a pension as well I understand your view is because you have always been employed in nice pension providing government job of sort type -- good for you I am sure if you were self employed or running your own biz all your life your view would be different If you feel it is wrong to take state pension --then take out a convenant and give it a charity --you will get full tax credits its like the gp,s retiring cos their pension pot has hit the £1,000000 mark where its taxed different would i do the same --probably --but i never had a million pound pension pot when I (technically) retired--that would give about £5k a month before tax+ state pension +earning related up grades --another 1K a month anyway +winter fuel allowance winter fuel allowance --yes that could be means tested ,but would probably cost more to operate than it would save poor bastards !! Link to comment Share on other sites More sharing options...
Ed Davies Posted May 9, 2019 Share Posted May 9, 2019 So 20% VAT on domestic fuel, too, I hope. Oh, maybe that won't happen. Link to comment Share on other sites More sharing options...
ProDave Posted May 9, 2019 Share Posted May 9, 2019 As a self employed electrician I object to people saying I am part of this "GIG Economy" It seems to imply we are dishonest, don't declair our income and don't pay tax. Link to comment Share on other sites More sharing options...
scottishjohn Posted May 9, 2019 Share Posted May 9, 2019 11 minutes ago, ProDave said: As a self employed electrician I object to people saying I am part of this "GIG Economy" It seems to imply we are dishonest, don't declair our income and don't pay tax. self employed and vat registered is not "gig" economy If not vat registered --then you are no way you can make a living if not vat registered,eg turnover below vat threshold and not labour only biz and all is going through the books turn over threshold is so low 68k from memory Link to comment Share on other sites More sharing options...
vivienz Posted May 9, 2019 Share Posted May 9, 2019 1 hour ago, scottishjohn said: turn over threshold is so low 68k from memory It's £85k now. Inflation is a terrible thing! Link to comment Share on other sites More sharing options...
scottishjohn Posted May 9, 2019 Share Posted May 9, 2019 so is old age still I don,t see how can have an income of say £30k from any biz if turn over is less than £85k by the time you tak off all overheads If it all going through the books Link to comment Share on other sites More sharing options...
Jeremy Harris Posted May 9, 2019 Share Posted May 9, 2019 Depends. My consultancy business never came close to reaching the VAT threshold, even though I charged £130/hour. In my case the overheads were just travelling expenses, plus a PC, printer, paper and some software, so never very much in any single year. Biggest single expense was travelling, made up around 20% of my total turnover usually. Link to comment Share on other sites More sharing options...
PeterW Posted May 9, 2019 Share Posted May 9, 2019 1 hour ago, scottishjohn said: no way you can make a living if not vat registered,eg turnover below vat threshold Quite a simple way actually... Good friend of mine is a sports physio - £50/30 mins, probably does 16 hours a week at most. Turns over around £75k, expenses are the office/consulting room, phone and PC and is self employed and the whole lot goes through the books as taxable etc. No need to go VAT registered as there is very little by way of VAT recovery, and charging VAT would be counter intuitive. Link to comment Share on other sites More sharing options...
SteamyTea Posted May 9, 2019 Share Posted May 9, 2019 5 hours ago, JSHarris said: A friend of mine lost his pension in the Mirror Group pensions scam Seems small now considering: https://www.lovemoney.com/news/4133/the-five-biggest-pension-scandals Odd how we don't complain when our properties go up 5 fold in a decades or 2, maybe that should be taxed and the money put in a pot to help out pensioners, or some other worthy cause. 4 hours ago, Ed Davies said: So 20% VAT on domestic fuel, too, I hope. Oh, maybe that won't happen. Yes, it still seems odd to me. I wonder how they are going to tax EVs. Possibly on ownership rather than usage. Link to comment Share on other sites More sharing options...
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