Are you a builder, plumber, renewables engineer or gas engineer or another installer of energy saving materials? This article will help you understand the basics of how the reduced rate of VAT could apply to you, your business and your customers!
Many people aren’t aware that if they are installing energy-saving materials they may be reduced-rated for VAT purposes, even if the installation is granted funded! However, this tax saving rule only applies to installations, not supply- you must be putting in place energy-saving materials, usually by the means of permanently fixing them, (although loft installation can just be unrolled and positioned and still be considered installed) to charge the reduced rate. If you’re only supplying the products, then they are charged at standard rate. The installation must be in, or in the curtilage of, residential accommodation, for example: