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Where Taxpayers and Advisers Meet

5%VAT conservatory Roofs/conversions

Linzi218
Posts: 4
Joined: Fri Dec 21, 2018 6:25 pm

5%VAT conservatory Roofs/conversions

Postby Linzi218 » Wed May 15, 2019 7:43 pm

Hi all

Wondering if you could shed some light I have been asked to help a business with bookkeeping they currently convert conservatory roofs to new lightweight roofing systems and also complete conservatory renovations.they want to charge 5% vat as they are near reaching the vat threshold.

However my query is if the 5% vat applies to sales due to the energy efficiency regulations? I don't want to start helping with bookkeeping without the correct information as I am unsure about the 5% vat regulations for energy efficiency. As always the vat notices are unclear.

Any help would be appreciated.

robbob
Posts: 2753
Joined: Wed Aug 06, 2008 4:01 pm

Re: 5%VAT conservatory Roofs/conversions

Postby robbob » Thu May 16, 2019 8:08 am

Hello Linzi

Notice 708/6 is probably the best starting point - specifically section 2.3.3 as you say energy saving materials.

I wouldn't worry about knowing the full chapter and verse in this regard as there can be any number of reasons why reduced rate may apply. Personally i would always ask anyone the reasons why they think something is reduced rated and ask for a copy of the relevant advise they have confirming that fact - that's the best way of covering a scenario where its covered by something you may not be aware of without looking silly - its difficult to find the stuff you don't know exists!

Other reasons i can think of would be empty homes / new builds or conversions eligible to 5% - thats all covered by notice 708
https://www.gov.uk/government/publications/vat-notice-708-buildings-and-construction/vat-notice-708-buildings-and-construction

Unless the items are specifically energy saving products (insulation is only obvious one i can think of here) being billed as separate installation i am a bit dubious as to whether 5% would normally apply here so i understand your hesitancy - who knows though perhaps there is something i am not aware of in that regard.

Trevor S
Posts: 23
Joined: Tue Jan 01, 2019 12:37 am

Re: 5%VAT conservatory Roofs/conversions

Postby Trevor S » Thu May 16, 2019 11:25 pm

The legislation is http://www.legislation.gov.uk/ukpga/1994/23/schedule/7A, groups 2 and 7. This leads to much the same conclusion as the notices already referred to.


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