Taking advantage of 0% VAT on domestic air conditioning installation

Here in the UK, central heating systems are standard for most houses, but they’re neither the most efficient nor environmentally-friendly way of heating your house. In April 2022, the British government announced that 0% VAT would be added to the installation of certain energy-saving heating equipment, including air conditioning units. This went into effect on the 1st of April, and will last until the 31st of March 2027.

For more information on VAT on energy-saving equipment, check out the guidance on the government’s website.

In this article, we’ll discuss the purpose of the scheme, why air con installation is included, and what you can do to make the most of this opportunity.

What is the purpose of the 0% VAT scheme?

The scheme aims to help homeowners tackle energy costs and domestic carbon emissions to stay on track with energy targets in the UK. Reducing the VAT incentivises the installation of energy-saving equipment, such as air conditioning units, by making it more affordable than ever.

Why is air conditioning included?

Air source heat pumps are an addition to the list. And because most air conditioning units are air source heat pumps, they are eligible for 0% VAT. Air source heat pumps work by absorbing heat from the surrounding air and transfer that into heat for the home. However, they can also be reversed to draw heat from the air and pump it outside to cool the building.

This means that air conditioning can heat a house in the summer but cool it in the winter, making it an effective solution for regulating temperature in your house.

The best time for air con installation

With 0% VAT on domestic air conditioning installation, now is the best time to install some in your home. The downside to air conditioning, compared to central heating, is usually said to be the upfront cost of having the unit installed — even though it may save you money in the long run. But a reduction of VAT on the installation helps mitigate that cost, making it easier to install and saving your money down the line.

The benefits of domestic air conditioning

Although not traditionally common in the UK due to the mild temperatures, air conditioning can be up to three times as efficient in heating your home compared to a central heating system. This means you’ll use less electricity to heat your house to the same temperature for the same amount of time. And with energy bills getting tighter and tighter, you mat be able to reduce your monthly expenditure, too.

The other benefit of air conditioning is its versatility. When the weather reaches the high 20s in the summer, houses with a central heating system will open the windows, but when that isn’t enough, the only option is portable fans. But when you have an air conditioning unit installed, it can be repurposed from heating to home to cooling your home, meaning you have both functions bundled up in one device.

Air conditioning in Cambridge with JMJ

With 27 years of experience providing air conditioning installation in Cambridge, at JMJ we’re happy to help you make the most of this VAT reduction — and save money on your heating bills in the long term, too. We provide units from a wide range of manufacturers and offer installation and air con repair services too, all at an affordable price.

Feel free to contact us for more information, or fill out the form on our contact page for a free quote.

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