Zero Rated Vat On Insulation
The UK Government recently advised that they would cut the vat on insulation installation to zero rated vat. This new measure will be enforced from the 1st Of April 2022.

What does that mean?

You will still need to pay the 20% vat on the goods, the VAT reduction will be seen on the actual cost of installation. This mean you when you receive you bill for the labour part of the project there will be no VAT on the labour for the insulation. Therefore the directly affect individuals though lower prices charged by ESM installers. The installed will receive the benefit of the VAT reduction which should then be passed onto their customers.

How long will the zero rate vat on insulation installation be for?

The government has advised that this new measure will be in place for the next 5 years, after with there will be a reduced vat of 5% in place.

Under with policy does the zero rate vat on insulation installation fall?

You can find more information form the government by searching for value added tax on installation of energy saving materials commonly abbreviated to ESM.

When does the zero rate vat on insulation installation come into place?

This new policy will come into effect on Friday the 1st Of April 2022.

What other products are classed as energy saving materials?

  • Insulation
  • Wind and water turbines will be added back to the list of ESMs
To find out more information and current information please be sure to check the government website for up to date information.
Policies may change and this post may not be updated.
Click here to go directly to the government website:-