VAT experts energy saving materials

[Lottsbiffandsmudge]

Any tax accountants out there that could help?
Been on hold to VAT office for an age...tried several times
We are having our house re rendered. As part of this process 2 elevations are having external wall insulation installed.
EWI counts for 0% rating for VAT in the new guidelines.
My installer usually only renders but has got an insulation guy advising him. He has bought the insulation board at 20% VAT
Our issue is that I am not sure if this job will count as only half the house is being insualted (the other half is newer and well insulated or not worth doing (garage wall)).
The examples on the website of 'ancillary works' are more clear-cut.
So having insulation fitted as part of a new extension is not 0% rated as it part of a bigger job that attracts 20%
Clearly we have to have the part of the house being insualted rendered over so the render would be ancillary to the insulation but not sure if 'matching' the render on the rest of the house could count as ancillary.
My installer is clueless. It's not a benefit to him to sort this out as he will get paid the underlying amount either way. He is also worried about not charging me the VAT and then getting stung. He also doesn't know how to account for it.
It's worth about £7.5k to me and so worth me putting in the leg work.
Anyone with professional knowledge able to help?

Hi,

Is the main purpose of the work to install the energy saving material? And the rendering is ‘making good’ the house afterwards? If so, I think you have a good arguement for zero rating.

if you were getting the energy saving material as part of overall work though I think it is trickier. Can you agree with supplier that he won’t charge VAT but a clause that you will pay if HMRC challenge this?

Thanks for replying. The main purpose of the work is having the house re-rendered as the render has blown on one elevation. We are having better render rhayvdies not require paonting so have to so all 4 elevatioms. But obviously it makes sense to insualte the 2 old walls whilst doing it.
In terms of the installer how would he account for it? Does he put it in a VAT return and how does he claim the VAT back on the materials?
If you know!

Hmm, it might be tricky - this HMRC guidance looks at the case of boilers and found the energy saving materials going alongside the boiler didn’t qualify: www.gov.uk/hmrc-internal-manuals/vat-energy-saving-materials-and-grant-funded-heating-supplies/vensav3240

it also feels a bit like the loft example in 2.72 here: www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086#installations-of-energy-saving-materials

is the energy saving material a separate installer to the rendering? That might help if so.

in terms of the VAT accounting it’ll be really easy for the supplier - they will recover the VAT they have paid on the purchase via the VAT return, but not have to account for any VAT, so they will get a refund from HMRC. (If HMRC agree is qualifies for the zero rate!)

Thanks it is tricky. I have a technical call back from VAT office on Thursday so will see what they say.....

Hopefully they give you a helpful answer! It can be hit and miss. Can you let me know what they say? Thank you!

Realise this was a while ago but what was the answer in the end? Doing same with mine