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VAT Increase, no effect on 5% rate for heating

The standard rate of VAT is currently 17.5 per cent but will be increased to 20 per cent on 4 January 2011.

According to the HMRC website, any sales of standard-rated goods or services that are made on or after 4 January 2011 VAT must be charged at the 20 per cent rate.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales made at these rates are unaffected by this change.

This means that for items such as electronic controls or TRVs the VAT figure will remain at 5%.

To check the full range of items relating to heating that are at the reduced rate check this table 

For more information visit the HMRC website here