Domestic energy tariff at business premises

Lisamarie1985

Hi
I was wondering if anyone could help... I have owned a business for nearly 5 years. It is located in a former residential property (semi-detached house) and has always been supplied by a domestic energy contract (dual gas and electric).
Is it ok to stay on the same contract if I'm happy with the domestic tariff or is it a legal requirement that a business be on a business tariff. If so can the energy company back date this for the length of time I have owned the business?
Thanks in advance
Lisa

footyguy

Lisamarie1985 wrote: »

Hi
I was wondering if anyone could help... I have owned a business for nearly 5 years. It is located in a former residential property (semi-detached house) and has always been supplied by a domestic energy contract (dual gas and electric).
Is it ok to stay on the same contract if I'm happy with the domestic tariff or is it a legal requirement that a business be on a business tariff. If so can the energy company back date this for the length of time I have owned the business?
Thanks in advance
Lisa

If the energy being used at the address is not for residential/domestic purposes then you should be paying the full amount of VAT on the energy i.e. currently 20%
If you are VAT registered, you can presumably reclaim this as input tax.

I would say failure to declare may be considered fraud or tax evasion, which is illegal.

If you are discovered to be evading tax, then HMRC probably won't stop with just your VAT on energy, but will commence a full tax investigation on you and your business.

Can't really say any more as discussion of illegal activities is not permitted on MSE.