This week we look at the most recent Agent Update and HMRC’s latest News and Information Bulletin has been published. The VAT zero rate for energy savings materials is being extended from February 2024 and the latest HMRC performance reports have been published. And finally, updated guidance has been published on claiming for R&D tax relief.
-
the new National Insurance tool for employees;
-
the tax treatment of Horizon Shortfall Scheme compensation payments for postmasters
-
the 2022/23 Self-Assessment deadline;
-
changes to paternity leave and pay; and
-
a reminder on repayment agent registration.
VAT zero rate for energy savings materials
A recently published policy paper confirms that the VAT zero rate is to be extended to more energy saving materials (“ESMs”) and will take effect from 1 February 2024.
Installations of ESMs in residential accommodation currently benefit from a temporary VAT zero rate until 31 March 2027, after which they revert to the reduced rate of VAT at 5%.
This measure extends the relief to installations of ESMs in buildings used solely for relevant charitable purposes, such as village halls or similar recreational facilities for a local community.
It also expands the scope of the relief to the following technologies:-
-
electrical batteries that store electricity generated by certain ESMs and from the National Grid (the grid);
-
water-source heat pumps; and
-
diverters that enable excess electricity from certain ESMs to be used within a building in which it is generated rather than exported to the grid.