Good to Know

Construction and manufacturing companies received a tax rebate for using red diesel fuel in their off-road vehicles and industrial machinery. However, starting on April 1st, 2022, the red diesel rebate was taken away from companies in several sectors and industries. The Civil Engineering Contractors Association estimates the rebate loss could cost construction companies anywhere from £280 million to £490 million annually.

This red diesel rebate reduction was announced way back in 2020, so companies have had time to prepare for it. The government wants construction companies to use greener alternatives to red diesel, so they are removing the rebate to encourage companies to look for alternative fuels.

Unfortunately, there are not too many greener fuel alternatives available to small builders and firms. In fact, this new government measure will increase fuel costs for small builders, which means their service costs will increase for their clients. That will have significant ramifications for both small builders and the number of people who want to build.

As a result, the government needs to step in and support the construction industry, particularly small builders. It makes no sense that farmers in the agriculture industry are exempt from the red diesel rebate reduction, but not builders. Smaller builders need more affordable access to greener alternatives if they are going to survive. Biodiesel costs up to 15% more than regular diesel, which is already too much for most small builders to afford.

Do you have questions about the red diesel rebate reduction laws? Collyer Construction Limited can answer your questions and help you find the most affordable options for your building project. Contact us at 01252 624041 or email us at admin@collyerconstructionltd.co.uk.

The UK government recently announced new 0% VAT measures for specific types of energy-efficient product installations in homes. Customers who make these installations will be charged 0% VAT, which means they won’t have to pay a value-added tax on the service.

These 0% VAT measures aim to encourage more homeowners and builders to install energy-efficient products to help reduce national carbon emissions in the UK. It is all part of the government’s plan to have net-zero carbon emissions within the next 30 years.

Some of the energy-efficient products allowed under these measures include:

  • Solar panels
  • Insulation
  • Draught stripping
  • Central heating controls
  • Water turbines
  • Wind turbines
  • Air source heat pumps
  • Ground source heat pumps

To receive the 0% VAT rate, you must hire a builder to supply the energy-efficient product and perform the installation together. Therefore, you cannot purchase the product and then decide to do the labor yourself because it would not entitle you to the 0% VAT rate.

This special offer is available up until March 31st, 2027. If you decide to install energy-efficient products after this date, you will get charged a 5% VAT rate. So there is no better time to start upgrading your home with energy-efficient products than right now.

About four million households in the United Kingdom don’t make improvements each year because of the VAT costs. Hopefully, the 0% VAT savings will encourage more homeowners to think about improving their homes to protect the environment.

Collyer Construction Limited can answer your questions about the new 0% VAT and the requirements you must satisfy to receive it. Contact us at 01252 624041 or email us at admin@collyerconstructionltd.co.uk.

There will be some significant changes to the building regulations in the United Kingdom. Starting in June 2022, new and existing buildings will be required to have energy-efficient improvements for lowering carbon emissions. It is part of the national initiative to move the UK toward net-zero carbon emissions by 2050.

The construction industry is a massive contributor to carbon emissions in the UK. The government wants new homes and extensions to be constructed with more energy-efficient structures and features. Existing buildings and commercial buildings must also conform to this energy-efficient initiative by making the necessary improvements.

The government wants to cut the carbon emissions produced from all new homes by 30%. They also want to cut the carbon emissions from existing buildings by 27%. All property owners have until June 2022 to comply with the new building regulations. Failure to follow the new regulations could result in the local authorities taking legal action against you.

The GOV.UK website can give you access to the new Approved Documents, O, L, and F. These documents provide specific information regarding the latest building regulations and requirements. Use these documents to help guide you through the development or improvement process so that you obey the new laws.

If your new home development is still in the planning stages, you must submit your full plans or building notice to the government before June 15th, 2022. Your home development project won’t be subjected to the new regulations if approved.

Collyer Construction Limited can assist you with these new regulations during construction. Contact us at 01252 624041 or email us at admin@collyerconstructionltd.co.uk.