Pricing
Job price with VAT (energy-saving materials relief)
- where
- net price (£)
- materials cost (£)
- markup on materials (%)
- labour (£)
- VAT (£)
- VAT rate (%)
- total price (£)
Explain this equation
Builds a job price from materials, markup and labour, then adds VAT at the rate you choose.
Materials are marked up by your percentage and labour is added to give the net price. VAT is that times the rate. Installing qualifying energy-saving materials in homes is currently zero-rated in Great Britain, which is why the default rate is 0%.
A sum of priced parts with percentages applied.
Sense check: £1,000 of materials at 15% plus £800 labour is £1,950; at 0% VAT that is the total, at 20% it would be £2,340.
Watch out: check that the measure and the property qualify for the energy-saving materials relief, and keep evidence. Supply-only sales are standard-rated.
Builds a job price from materials, markup and labour, and adds VAT at the rate that applies.
Enter your values to see the result.
Good to know
Installing insulation, draught stripping and heating controls in residential accommodation is zero-rated from 1 May 2023 to 31 March 2027, and 5% from 1 April 2027 (VAT Notice 708/6). The relief covers the whole installed supply, materials and labour. Supplying materials without fitting them is standard-rated at 20%. Other work on the same job (for example redecoration) may be standard-rated. Only charge VAT if you are VAT-registered.
Common mistake
Charging 20% on a supply-and-fit insulation job in a home, or zero-rating materials sold without installation.
Limits
Check HMRC Notice 708/6 for mixed supplies, buildings used for charitable purposes and the tax point for jobs that straddle 31 March 2027.
Sources
Results are calculations from the published methods and figures shown, and depend on the data you enter. Follow BS EN ISO 6946, BS 5250, PAS 2035, Building Regulations Part L and manufacturers’ data. Whole-house retrofit needs a qualified retrofit assessor and coordinator.