VAT - Is there an upper limit?

[Graeme Harrold]

Got to get a quote in for a domestic 10kW system and struggling to see whether this is still billed at 5%. I know there is a theory that 4kW is demed to be the upper limit on a domestic property, but does anyone know where the line is drawn?

Might have to give HMRC a call on this on as there is nothing on their site regarding size limits (i.e. what constitutes domestic).....this also applies to me as Im about to wack an extra 4kW on my own roof.

 

[Worcester]

We've done a 50kWp domestic install before now, big 3 phase user, (VERY big house) pv went on the "garage" that housed his collection of cars (large collection ...) meter to which MPAn was applied, was charged as a domestic customer, so we charged 5% it was not a business end of story. Of course he can't offset the purchase against business and he can't claim the VAT back either

We regularly do 10kWp domestics (Big houses round here!)

 

[BruceB]

On the VAT side, size is not relevant, it is on what it is installed.
On income tax size is relevant as the power must not significantly exceed the amount consumed by your own use.
I'll dig out the references - I believe I have posted them before.
Regards
Bruce

Edit: Here are the refs

For VAT
HM Revenue & Customs
paras 2.5, 2.9, 2.16 and 2.17 are particularly relevant.

For income tax
BIM40520 - Domestic microgeneration: Income tax exemption for domestic microgeneration

 

[Graeme Harrold]

Thanks for the replies, and pretty much confirms what I now feel happy doing. If the VAT shhet on solar on HMRC does not make the point clear, then Ill charge 5%.

 

[TedM]

For income tax (not VAT) purposes the size limit is 50kW. HMRC have confirmed that the exemption only applies to 'microgeneration' which is defined as that size, so larger systems will attract tax on the income even if domestic.