Discussion
dvs_dave said:
And don't ask contractors for "air conditioning" as then they have to charge VAT. If you ask for an air-to-air heat pump system (which can also cool), then you can exclude VAT.
It makes no difference, they're all VAT free now. Indeed, they always were VAT free, but it was poorly explained/advertised. 
Condi said:
dvs_dave said:
And don't ask contractors for "air conditioning" as then they have to charge VAT. If you ask for an air-to-air heat pump system (which can also cool), then you can exclude VAT.
It makes no difference, they're all VAT free now. Indeed, they always were VAT free, but it was poorly explained/advertised. Does anyone have that link to HMRC that proves otherwise?
Simpo Two said:
The engineer who's just visited says it's all charged at 20%...
Does anyone have that link to HMRC that proves otherwise?
https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086#:~:text=This%20notice%20explains%20when%20the,5%25)%20in%20section%203.Does anyone have that link to HMRC that proves otherwise?
Section 2.15 but open to interpretation?
dickymint said:
Brilliant, thanks. 2.5.1 I think:'A single supply is where one element of the supply is the principal element to which all other elements are ancillary.'
It looks like single supply to me. However whether that means it's all at 0% or all at 20% I can't tell, my brain just packed up!
Simpo Two said:
dickymint said:
Brilliant, thanks. 2.5.1 I think:'A single supply is where one element of the supply is the principal element to which all other elements are ancillary.'
It looks like single supply to me. However whether that means it's all at 0% or all at 20% I can't tell, my brain just packed up!
"2.15 Air source heat pumps
Air source heat pumps use the air as a source of heat. They absorb heat from the outside or surrounding air and transfer that into useable heat in the home for space or water heating, or both.
Fixed air source heat pumps can be reversed so that they can draw heat from inside a building, thus providing cooling during the summer as well as indoor heating for colder periods of the year.
Only air source heat pumps that are permanently fixed and are not portable or moveable qualifies as energy-saving materials.
HMRC’s understanding is that most air conditioning units are air source heat pumps. However, in cases of doubt, deciding if any particular product is to be treated as an air source heat pump will depend on the facts of each case."
My guess is that heating only the loft space is a very grey area
dickymint said:
HMRC’s understanding is that most air conditioning units are air source heat pumps.
This is the fallback for 99% of cases. Unless your units only cool and do not heat at all, in which case the installers may be right.
For a normal split system they do both and are 0% VAT.
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