VAT rates

[Robotmannick]

Hi all,

Can anyone help me understand what VAT rates are applicable as I’m confused!

I have two contractors, the main one is installing a biomass heating system. Definitely reduced rate 5%. Ok so far, but they're not certified to do the electrics so I need a separate contractor to install the timer, thermostat and supplies for the new boiler etc.

Is this electrical work also reduced rate? hmrc website says heating controls are reduced rate, but entire central heating systems aren’t. Given that the entire system is already reduced rate then surely all the supporting electrical works also are? Besides, the electrical contractor is not installing an entire heating system, they’re only installing the heating controls, so that should mean their work is also reduced rate, correct?

Any thoughts? Cheers all.

 

[Dan Robinson]

As I understand it it is not covered.

This whole reduced rate business is a total joke though.

Talk to two different people at HMRC and you'll get two different answers.

The cost to administer this on a job costs more than any blo0dy savings the 15% reduction is likely to make.

 

[snb]

get the company who installing the biomass to employ the electrcian. they can then charge the whole job to you at 5% as per the rules.

if you get them to do it separately the electricians should still be charging 5%vat as this is renewable heating install.

 

[Robotmannick]

Thanks guys for the responses. Conflicting opinions still-I’m siding with snb, but that’s only because it’s the answer I want Also agree with Dan though, it’s really not clear and a lot of hassle.

Nick