During the recent Spring Statement, Chancellor Rishi Sunak announced that the VAT rate which applies to the installation of a/c systems in domestic/residential properties will be 0%
This replaces the previous rates of 5% and 20% which have applied over the past few years. In fact, it introduces some much needed clarification to this topic as many have struggled with the previous HMRC advice which has not been clear at all and open to interpretation, and therefore error.
So, any a/c system which is installed after 1st April 2022 in a domestic or residential property will be charged at 0% provided the invoice is paid for by an individual - as opposed to a company or charity or public sector organisation - and, crucially, the system must be able to heat as well as cool. This is because a/c units are Air Source Heat Pumps and it is this very efficient technology which the government is keen to increase the uptake of among households.
If the idea of almost instant and energy efficient heating or cooling isn’t enough for you, if the idea of filtered and treated air circulating throughout your premises isn’t enough for you, if the idea of a stylish and fashionable unit which complements your decor isn’t enough for you….. then maybe a VAT free invoice at the end of the job might finally convince you to have a/c installed?? We all like a bargain and this certainly sounds like one to us!
Go on; what are you waiting for??
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