The Government has announced that you do not need to pay VAT on any external wall insulation, if you use a VAT registered Installer!
With rising energy bills and more people being impacted by energy poverty, there has never been a better time to insulate your home.
In this blog, we will look at how 0% VAT could benefit you!
How does 0% VAT save you money?
0% VAT significantly lowers the overall cost of installing External Wall Insulation, saving you money in the short and long term.
For example, let’s look at an external wall insulation installation that costs £7,500. Under previous reduced VAT rules, installers were able to charge a reduced rate of 5% to this. So the customer would be required to pay a total of £7,875. (£7,500 x 1.05).
However, after the Treasury's announcement today, the job would now have zero VAT and therefore cost £7,500, a total saving of £375!
How can External Wall Insulation save you money in the long run?
We have spoken about short-term savings but now let's look at how EWI can save you money in the future.
Installing EWI can massively reduce your energy bills. If you install 90mm of insulation to the exterior of your property as solid wall insulation, it can typically reduce your heating energy bill by up to 50%!
As energy prices continue to rise, year on year savings will continue to get bigger.
This will play a massive part in reducing energy poverty for thousands of households across the UK.
What is energy poverty?
The term 'energy poverty' is being more common, but does it mean?
The term energy poverty is a reference used when someone cannot keep their home adequately warm. This can be from a combination of reasons, mainly due to high expenditure of disposable income on energy and poor energy efficiency.
Due to the rising energy bills, more and more people are falling into energy poverty.
Nick Miles, commercial director of EWI Pro External Wall Insulation systems commented today ‘We are delighted that the Government is beginning to recognise the importance of energy-saving measures in this country. We are hopeful our EWI Pro external wall insulation systems will save homeowners £’000s on heating bills over the coming years'.
How can I find a trusted & approved local Installer?
It is worth noting that not all installers of external wall insulation systems are VAT registered. However, due to the size of the contracts, it is rare to come across companies who are installing EWI products on a full-time basis who don't have to charge VAT.
If you would like to find an EWI Pro registered installer in your local area, you can find more information here!
There has never been a better time to install external wall insulation! Take advantage of the Governments generous zero percent VAT while you still can.
Find out more!
If you would like to find out what materials you need to start rendering and insulating your home. Read one of our helpful buyers guides or speak to one of our representatives on 0203 0340022.
If you would like to read more on the increasing energy prices, check out our blog on 'High energy bills? Cut energy costs with loft insulation and external wall insulation.'