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 the definitive 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 most plumbing work attracts the 13.5% reduced rate), UK plumbing on existing buildings is standard-rated at 20%.

When does the 5% reduced rate apply to plumbers?

The 5% reduced rate applies to:

• Installation of heating appliances in domestic properties (gas, oil, electric boilers)
• Connection of a gas supply to residential premises for the first time
• Converting heating systems in properties that have been empty for 2 or more years
• Certain residential conversions and renovations (with conditions)

Note that the 5% rate applies to the supply and installation as a combined service. If you are simply repairing or servicing an existing boiler (not supplying a new one), the standard 20% applies.

When does the 0% rate apply to plumbers?

The 0% rate applies in two main situations:

New residential construction

Plumbing work as part of building a new residential property from scratch can be zero-rated, as long as the end customer is the person who will occupy it and specific HMRC conditions are met. Work on new commercial buildings is standard-rated.

Energy-saving material installation

From February 2024, the installation of qualifying energy-saving materials in residential properties is zero-rated. This includes:

• Heat pumps (air source, ground source)
• Solar water heating systems
• Draught stripping
• Insulation materials

If you install heat pumps or solar water heating as a plumber, this 0% rate applies to both the materials and the installation labour. Check HMRC's energy-saving materials guidance for the complete list of qualifying products and conditions.

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?

No. CIS is a separate scheme from VAT. If you are working as a subcontractor under CIS, your contractor deducts CIS from your labour payment, but your VAT obligation is unchanged. You still charge VAT (unless the Domestic Reverse Charge applies - see the CIS guide).

VAT for plumbers in Ireland - how it compares

Ireland has a different VAT structure for plumbers. Most plumbing work on buildings in Ireland is subject to the 13.5% reduced rate - not 23% and not the same as the UK's 20%. See our guide to VAT for plumbers in Ireland.

What to put on your VAT invoice as a UK plumber

Your invoice must show the VAT rate applied to each line item and the total VAT amount. For jobs with a mix of 20% and 5% elements, show them as separate lines with the respective rates.

PayReady handles this automatically - you describe the job, PayReady AI sets the correct VAT rate for each element, and generates a compliant invoice. 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.