0% VAT on Energy-Saving Materials (Nov 2026): Installation vs DIY Board Sales
Article dated 5 November 2026 (Europe/London). This explains the UK’s temporary 0% VAT relief on installations of qualifying energy-saving materials, and how that differs from buying insulation boards online from Insulation Warehouse Direct. VAT rules can change — always check the current HMRC VAT Notice 708/6.
Quick answer
Until 31 March 2027, the installation of certain energy-saving materials (including insulation) in residential accommodation — and, from 1 February 2024, some charitable buildings — can be zero-rated for VAT when the work qualifies under Notice 708/6. From 1 April 2027 that temporary zero rate is due to revert to the 5% reduced rate for qualifying installations. Supplying energy-saving materials without installing them is standard-rated (20%). Insulation Warehouse Direct sells materials online and does not install; our website prices are shown ex VAT, and VAT at 20% is added at checkout on our goods unless a specific product page states otherwise. We do not claim that DIY board sales from our site are 0% VAT.
Installation vs DIY materials (the distinction that matters)
| Situation | Typical VAT treatment (check HMRC) | Notes |
|---|---|---|
| Installer supplies and fits qualifying insulation in a dwelling | May be 0% until 31 Mar 2027 if it meets Notice 708/6 | Installer is responsible for charging the correct rate |
| You buy boards online; someone else installs later | Retail supply of materials is standard-rated | This is how most online DIY orders work |
| You buy boards and fit them yourself | Materials supply still standard-rated at the till | 0% relief is about qualifying installation supplies, not automatic DIY retail |
HMRC’s own wording is clear: if you supply energy-saving materials without installing them, the supply is standard-rated. See Notice 708/6, section on scope of the relief, and GOV.UK tax on energy-saving products.
What counts as energy-saving materials (insulation)
Notice 708/6 lists insulation among the qualifying materials when it is installed in eligible buildings (walls, floors, ceilings, lofts and so on — read the notice for the full list and definitions). Other items on the list include draught stripping, solar panels, heat pumps and more. We only sell insulation and related building materials; we are not commenting on every technology on that list.
What Insulation Warehouse Direct charges
- Product prices on the site are shown ex VAT.
- VAT at 20% is added at checkout on our goods in the normal way.
- We are a materials supplier only — see the FAQ below. If your installer is zero-rating a supply-and-fit contract, that is between you, them and HMRC; it does not change how our online checkout calculates VAT on a materials-only order.
- If you ever see a specific product marked differently on its page, follow that page — do not assume 0% across the catalogue.
After 31 March 2027
As of November 2026, official guidance states the temporary zero rate for qualifying installations runs to 31 March 2027, then reverts to 5% for those installations. Parliament and HMRC can change the law; re-read Notice 708/6 before relying on this after that date. The House of Commons Library briefing on VAT on energy-saving materials is a useful plain-English overview alongside the notice.
Practical buying tip
Price your PIR, loft roll or insulated plasterboard from our site on an ex-VAT basis, add 20% for the materials invoice you will receive from us, and ask your installer separately how they will VAT any fitting contract.
Frequently asked questions
Can I get 0% VAT when I order Celotex from your website?
No. Our online materials sales are charged with VAT at checkout at the standard rate (20%) unless a product page says otherwise. The 0% relief is about qualifying installations under Notice 708/6.
Does loft insulation I fit myself qualify for 0% at the till?
Buying the rolls without an installing supply is treated as a standard-rated retail supply. Confirm with HMRC guidance or your accountant if unsure.
Is the 31 March 2027 date definite?
That is the end date stated in current HMRC Notice 708/6 and related GOV.UK material as of 5 Nov 2026. Always re-check the live notice.
Do you install insulation, do surveys or help with grants?
No. Insulation Warehouse Direct sells insulation materials online. We do not install insulation, carry out surveys or handle grant applications. If you want it fitted, use a qualified installer, and for grants check the official GOV.UK energy schemes. We are happy to supply the materials your installer specifies.
Who should I ask about VAT on my project?
Your installer and, if needed, a tax adviser. We can help with materials lists and delivery, not tax advice.
| Where | What we deliver | Delivery charge |
|---|---|---|
| England | All ranges | Free on insulation, plasterboard and drylining from £400 ex VAT. Celotex: £400 ex VAT minimum, free delivery. Access panels: £15 + VAT under £300 ex VAT, free from £300 |
| Mainland Wales and mainland Scotland | British Gypsum (including Gypframe), Celotex, Knauf and access panels | £400 ex VAT minimum plus £40 + VAT (access panels: £15 + VAT under £300 ex VAT, free from £300) |
| Scottish islands | Not delivered | – |
| Northern Ireland | Not delivered | – |
Company: Bay Drywall and Insulation Supplies Ltd (company no. 14473556), Unit 3 Babbage Court, Totnes Industrial Estate, Totnes, Devon TQ9 5JE. This article is informational, dated 5 November 2026, and is not tax advice.
Sources: HMRC VAT Notice 708/6; GOV.UK: VAT on energy-saving products; House of Commons Library: VAT on solar panels and other energy-saving materials. Figures are indicative and correct at the time of writing; they are not a substitute for a calculation by your designer or the manufacturer's technical team, and Building Control has the final say.