With rising energy prices on everybody's mind right now, saving money on your bills is a priority facing millions around the country. Everybody wants to find ways to heat and cool their home as cheap as they can, while also buying quality products to supply this.
But when it comes to energy-saving materials, do I have to pay VAT? Read on to find out.
The VAT (Installation of Energy-Saving Materials) Order 2022
On the 23rd of March 2022, Rishi Sunak presented the 2022 spring statement to the House of Commons, with the measures in the statement helping to support the British public in dealing with the rising cost of living. One of these measures was The Value Added Tax (Installation of Energy-Saving Materials) Order 2022.
The measure introduced a time-limited 0% VAT rate on the installation of certain types of energy-saving materials. This reduction will be available until 2027 when it will then revert to the 5% rate. With this wind and water turbines have been added back to the list of energy-saving materials, along with the already listed solar panels, heat pumps (both air source and ground source), draught stripping, central heating controls, insulation and wood-fuelled boilers.
The government has in place a goal of getting emissions to net zero by 2050 and believes this reduced VAT will allow businesses and individuals to install better energy-saving materials and help to get to this goal faster. The changes will allow more people than ever to think about investing in features such as heat pumps, which can offer sustainable, cost-effective heating during winter and cool you down during the summer heat.
The VAT Order is eligible on all systems that can provide heating in addition to cooling for domestic properties. Before this systems that were used to cool were not eligible for reduced VAT.
Aircon Installation Near Me
Westcott Air Conditioning are experts in air conditioning, heating and ventilation systems, supplying customers with our products since 1966. We offer the installation of HVAC systems and heat pumps, along with regular maintenance and breakdown services. We stock a selection of high-performance systems that have low running costs, aimed at improving the air quality and regulating the temperature of the home and work environments.
With the 0% VAT for domestic air conditioning systems, there has never been a better time to invest in an HVAC system for your home. So call now on 0800 085 0904 to talk through what model will be best with one of our knowledgeable staff, or visit our website to explore the full range of products we offer.
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