Posted on Sep 10, 2014 by Nick
It has long been in the consciousness of all smart home installers that Home Automation should be 0% VAT rated, and the knock on effect that would have to the market. Finally after years of campaigning, HMRC have published Notice 708: Buildings and Construction – August 2014. For the first time intelligent lighting control has been recognised as "ordinarily incorporated in a building”.
Because of the multifunctional nature of the systems all Home Automation specialists install to a new build, inluding heating and air conditioning controls, blind controls etc. it has been a minefield for many companies to segregate the zero rated part of an installation, and the publication of this notice which clarifies ‘articles normally incorporated in a building’ has made things easier and clearer for everyone.
What will be the effect of this? Our hope is that this will open the market for intelligent building controls even further. The idea that lighting controls, not only switches and dimmers, but in wall controllers and touchscreens, should be ‘ordinarily incorporated in a building’ is a concept that we will always strive for and hope that home builders will take this on board and take advantage of the tax changes. Construction companies now have to seriously consider a proper technology infrastructure within their properties – the zero rating of intelligent control will surely be a major incentive to specify intelligent systems.