Energy Efficiency and VAT !

5% or 17.5% VAT ?  What can be charged at 5%  When can it be charged  Why does it matter?

What can be charged at 5% ? (Supply and installation)  Insulation: walls, floors, ceilings, roofs, lofts, water tanks, pipes;  draught stripping: windows & doors;  central heating controls;  hot water system controls;  solar panels, wind & water turbines.

What can be charged at 5% ? (Supply and installation)  Only the supply & installation of materials whose primary objective is energy saving qualify for reduced rate  A condensing boiler would not qualify because its primary purpose is to provide heat.

When can it be charged?  To everybody: fuel rich and poor  All residential accommodation or  a building intended for use solely for a relevant charitable purpose.

What can be charged at 5% ? (Grant funded works)  What are grant funded works ? 1.Warm Front 2.Council grants 3.EEC 4.EST

What can be charged at 5% ? (Grant funded works)  installing ‘heating appliances’ and ‘qualifying security goods’;  installing, maintaining and repairing central heating systems and renewable source heating systems,  in the homes of ‘Qualifying persons’,

What is a qualifying Person ?  In receipt of benefit OR  over aged 60 +

Why does it matter?  Warm Front ‘Client excess’ 1.Heating works should always charge to client account first 2.If Client excess is for heating works 3.Client pays: 17.5% 4.If the Council pays: 5%  Council grant limits 1.Warm Front limit £2,700 2.Council ‘Energy Grant’ is £5,000