Last week Chancellor Rishi Sunak divulged information regarding the health of the UK economy in his Spring Statement update.
One way in which households can keep their energy usage, and therefore their energy bills, down is to put in place energy-saving instalments, such as solar panels, heat pumps or insulation.
In 2019, the scope of the VAT reduced rate for energy saving materials (5%) was restricted to comply with EU law, since the UK rules were found to go beyond what was permitted.
For the next five years, however, as the Chancellor set out in the Spring Statement, homeowners installing such materials will pay no VAT at all.
He added that the Government would overturn the EU’s decision to take water and wind turbines out of the scope for reduced VAT, meaning that these installations will also benefit from no VAT.
For a more extensive overview please view our full report on the Spring Statement 2022.
We will also continue to publish bite-size breakdowns of our report throughout the rest of the day, so be sure to stay tuned for that.
Talk to our highly skilled team of accountants today to find out how these changes could affect you and your business.
Simply call 01254 589799.