What are VAT/Tax implications of solar panel installation

What are VAT/Tax implications of solar panel...

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Client is a vat registered individual on the flat rate scheme running a dog training business. Previously electric was 60% private. Client had the panels installed on the kennel block rather than his house as it was south facing. 

Originally my client was identifying this expenditure as not business which seemed totally strange given the circumstances

1) Am I correct in assuming that he can still reclaim the whole of the VAT on the installation costs.

2) Can he also then reclaim 40% of the initial cost as AIA in the year of installation (60% being personal)

Regarding the feed in tariff

2) Can the generation tariff be ignored as it is outside the scope of VAT

3) Does the whole of any export tariiff received require to be included in his VAT flat scheme calculation and also as taxable income in his annual accounts

4) If there is still an electricity liability should this still be split 60/40 personal/business as in past.

I have only one client on the flat rate scheme and also only one who has installed solar panels so I would appreciate any guidance

Many Thanks

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By bstock
16th Jul 2015 09:28

Read past answers and still not clear

Anyone know any useful links?

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