Reduced rate VAT for over-60s and disabled

[Stravaig]

I mentioned before that we're having some building work done in the house. One thing that no one mentioned to us VAT (not even B&Q who you think might be geared up to mention it when someone is spending a substantial sum on an accessible shower room). I just happened to find out about this whilst browsing for something else.

The standard rate of VAT is 20% on goods and services. However, people over 60 and disabled people of any age can claim a reduced rate on eligible goods and services.

Over 60s - 5%
Disabled - zero

You can find out more about what's eligible from the govt's website. (Scotland has the same rules in this instance although the laws and govt rules here differ in many other ways.)
https://www.gov.uk/guidance/reliefs-fro ... otice-7017

We spent a lot of money with B&Q on our bathroom project so this issue was very worthwhile pursuing. And I have to say B&Q have been dismal at the admin side of thing. Gee, I could write a book about what they did and didn't do. But I'll get to the salient points...

B&Q charged us, say, £12k (just to make the example easier). We had to pay their full invoice upfront for goods and services. The invoice included VAT at 20%. Not once did their various staff members we dealt with ever mention the issue of VAT even though the invoice contained items such as grab rails. You know, one might have hoped that this would have given them a clue that maybe the job was for a disabled person. No. They quite happily charged us the full whack of VAT. (So that means on an invoice of £12k we paid VAT of £2,000. (ie £10k x 1.2 = 12 k.) Over-paying two thousand quid is a serious amount of money! Actually the new shower room isn't costing as much as the hypothetical example here. But the point is still valid.

When we pointed this out to the various B&Q people including trying to get through to their admin helpline....blah, blah, no one had a clue how to deal with the issue. I mean really. We are the only B&Q customers in the UK who might be over 60 or disabled? This issue has never arisen before? That lot are as much use as an ashtray on a motorbike. Anyway, I followed it up on the various relevant govt. websites. The bottom line is if you have overpaid VAT you should claim a refund from the supplier (in our case B&Q). HMRC itself doesn't have a process for issuing these refunds direct.

If your supplier needs help with this, there's plenty of help available online from HMRC. (I can give links if anyone wants/needs this as I've spent considerable time researching the issue.)

As for what are eligible goods, that's also detailed in the govt guidance. Basically it's for goods whose purpose is as a mobility aid, eg walk-in shower for someone who can't get in/out of a bath, ramp into the house, and it must be in your personal home, ie not a care home.

If you're paying a lot of money for goods and services it's well worth a look to see if you can reduce the VAT you pay. Good luck.

[Westi]

We had a new structure with disabled facilities installed for Mr. We had to go through the council as apparently they hold the purse for disabled facilities with the back up of the therapists to confirm the need. So therapists came around to do all the measuring up & see him manoeuvring around our house & note the need which they pass on to the council who meet with them & then decide who gets. Choices are limited to their approved list, but you do get a choice (limited) of colours. We had to wait a long time as Mr actually couldn't get outside as the doors were too narrow for his wheelchair but they would not approve any changes which I understand as we have a small Wimpy House, a firm not renowned for their secure structures but eventually they agreed stable enough to widen. It was only centimetres!

They did show interest when we offered to pay for a new outside structure rather than the garage minus the agreed cost of the loo, shower etc. Made sense to us having the whole garage taken down as far to dark & narrow for someone to stay in, & an asbestos roof, so we paid for that to be removed as well & size extended which they agreed to without fuss. They also agreed to pay for the footings after us getting disabled advice from someone knowing & then brickwork to height. We did the roof & snuck in a sky light. Such a relief to get it finished as was a long stop/start & expensive journey. They approved it & it is now labelled an official 'Studio' by the council as will others have to that follow. Never again I say!