Sir

I have read with interest your recent articles about Biomass profitability and would like to share with you my experience with this.

We installed a Biomass boiler in 2014; this was done on a commercial basis and was to heat workshops, offices, cottages, two residential caravans and an outside toilet. This was completed and cost a considerable amount of money to ensure it was fully operational before the Ofgem registration deadlines.

It was all going well until we had a VAT inspection in 2016.

The result of that inspection was a huge shock to us; all the VAT we had claimed on the installation of the boiler was to be repaid and was dated back to March 2014. The end result is we are now on a partial VAT exemption and we are repaying HMRC £26,000 plus interest!!! We have been VAT registered since 1973 and have never experienced any issues or challenges and certainly never anything to this extent.

If we had the foresight to know what we would have faced regarding the installation and thereafter the financial side we would never have considered or even started the project. This was something I thought I had fully researched and investigated prior to starting and the decision to install was not taken lightly. Not what we were expecting when we were looking at ways to be more environmentally aware and economical.

I am sure that some of your readers who have installed a Biomass boiler will probably get a future VAT inspection as I think that the government will look to reclaim as much RHI monies as they can!

Regards

Alexander Hay

Midrisk Farm

Beith Road

Howwood

Renfrewshire