What VAT Rate Do Plumbers Charge in the UK?

Plumbers in the UK ask the same VAT question more than almost any other: what rate should I charge? This guide gives a straight answer, with the specific rules for boiler work, heat pumps, and domestic heating.

What VAT rate do plumbers charge in the UK?

For most plumbing work in the UK - bathroom installation, boiler replacement, repairs, heating maintenance, and general plumbing on existing properties - the VAT rate is 20% (standard rate).

This applies to both labour and materials when they are supplied as part of the same job. Unlike Ireland (where supply-and-fit plumbing work on buildings is usually 13.5%), UK plumbing on existing buildings is standard-rated at 20%. There is no general 5% rate for plumbing on homes - the reduced rate only covers the narrow cases below.

When does the 5% reduced rate apply to plumbers?

The 5% reduced rate only applies to qualifying work, such as:

• Installing heating equipment - including gas or oil boilers and radiators - for a qualifying customer (aged 60 or over, or on certain benefits) when a grant pays for it, and only on the grant-funded part
• Reconnecting a qualifying customer to the mains gas supply when a grant pays for it
• Plumbing and heating work when renovating a house or flat that has been empty for at least two years
• Plumbing work when converting a building into homes, or changing the number of homes in it (with conditions)
• Installing mobility aids for a customer aged 60 or over in their own home

A normal boiler replacement paid for by the customer is 20%. Gas and oil boilers are not energy-saving materials, and HMRC treats energy-efficient boilers as standard-rated unless the installation is grant-funded. Repairing or servicing a boiler is 20% as well.

When does the 0% rate apply to plumbers?

The 0% rate applies in three main situations:

New residential construction

Plumbing work done in the course of building a new house or flat can be zero-rated, if the building and the work meet HMRC's conditions. Work on new commercial buildings is standard-rated.

Energy-saving material installation

Installing qualifying energy-saving materials in a home is zero-rated until 31 March 2027, when it is due to go to 5%. For plumbers, this includes:

• Heat pumps (air source, ground source and water source)
• Central heating and hot water controls - timers, thermostats, thermostatic radiator valves
• Solar water heating panels
• Wood-fuelled boilers
• Insulation and draught stripping

If you install heat pumps or solar water heating as a plumber, this 0% rate applies to both the materials and the installation labour. It has to be a job in its own right - if the installation is part of a bigger standard-rated job, such as an extension, the whole job is 20%. Check HMRC's energy-saving materials guidance for the complete list of qualifying products and conditions.

Adapting a bathroom or toilet for a disabled customer

Installing, extending or adapting a bathroom, washroom or toilet to suit a disabled customer's condition, in their home, is zero-rated. It only applies when the customer (or someone responsible for them) signs an eligibility declaration, kept separate from your quote and invoice.

VAT rates for common plumbing jobs - quick reference

What if I supply plumbing materials only (no installation)?

If you sell plumbing materials or parts without installing them, the goods are subject to the standard 20% VAT rate regardless of what the customer intends to do with them.

The reduced and zero rates only apply when you are both supplying and installing as part of the same job.

Do CIS deductions affect my VAT?

The deductions themselves do not - CIS comes off the labour part of your payment and has nothing to do with the VAT. But subcontract work usually brings in the VAT domestic reverse charge. If you are VAT-registered and working for a VAT-registered contractor who reports your payments under CIS, you do not charge the VAT: your invoice shows the VAT rate and amount, says the customer must pay the VAT to HMRC, and the contractor accounts for it. It does not apply to work for homeowners, to zero-rated work, or where the customer tells you in writing that they are an end user or intermediary supplier. See the CIS guide for the detail.

VAT for plumbers in Ireland - how it compares

Ireland has a different VAT structure for plumbers. Supply-and-fit plumbing work on buildings in Ireland is usually 13.5% - labour and materials together - unless the materials cost more than two-thirds of the price, when the whole job is 23%. See our guide to VAT for plumbers in Ireland.

What to put on your VAT invoice as a UK plumber

A VAT invoice must show the VAT rate for each item and the total VAT amount. If one job genuinely mixes rates - say a grant-funded part at 5% alongside work at 20% - show them as separate lines with their own rates.

PayReady applies one VAT rate to the whole quote or invoice - the rate you set, which for most UK plumbing is 20% - and works out the VAT for you. It does not split rates line by line, so if a job mixes rates, get the split confirmed by your accountant before you invoice. Subcontracting for a VAT-registered contractor? Switch on reverse charge for that job and PayReady leaves the VAT off and adds the wording. Get early access - it's free.

Or download a free invoice template for UK plumbers.

For the complete picture on UK VAT, see our UK VAT guide for tradesmen.