5% Vat ?????

[eggs]

Does anybody know more about the reduced rate of VAT on domestic heat pumps?
From what i gather "Mr Hot Bedroom" now pays £100 + £5 VAT, insted of the more normal £100 + £17.50 VAT.
Can anybody elaborate?

Cheers

eggs

[frank]

Have a look at this Eggs

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PROD1_023957&propertyType=document

Basically, if you install direct for the homeowner then you charge the reduced rate. If you install in a dwelling or certain charitable establishments for a builder then you charge the builder 17.5% and he charges the homeowner 5%.

[eggs]

Thanks Frank.

Eggs