VAT for builders

Energy saving and mobility aids

You may be able to charge the reduced rate of VAT (5%) for work in residential properties to install:

  • certain energy-saving, heating and security products
  • mobility aids for people over 60

This includes the cost of the products themselves if you install them - but if you only supply them you must charge the standard rate of 20%.

Energy saving, heating and security

You can charge the reduced rate of VAT on work you do to install qualifying energy-saving products, and certain grant-funded heating and security equipment for people over 60 or on benefits.

You can also charge the reduced rate for extra work you need to do as part of the installation. But you must charge the standard rate of 20% on all work if the installation is just part of another, bigger job.

Example You have to cut a new hatch in the ceiling to install loft insulation. Because you needed to do this as part of the insulation, you can charge reduced-rate VAT.

Example You replace a roof with a new, insulated one. Because the insulation is just part of a bigger job, you have to charge the standard rate of 20% on the whole job.

Find out more about reduced-rate VAT for energy-saving products and grant-funded heating and security.

Mobility aids

You can charge the reduced rate of VAT on work you do to install certain mobility aids for people over 60, either in their own private home or in a private home that they share with their friends or relatives.