Being charged both 20% & 5% VAT on electricity bill

n4t

Hi,

I'm looking for a bit of advice.

I live and work on a farm and on my electricity bill i have the first page which is taxed at 5% and then on the second page it's also being taxed at 20%.

The bill doesn't have my address on it and it is also addressed to the actual business account.

It doesn't seem correct that i'm being charged both 20% and 5% for my bill when it's for a house?


Thanks in advance

Neil_Jones

Business energy IIRC attracts 20% VAT if it goes over a certain amount otherwise it's your standard 5% VAT.

amcg100

There is some information on energy taxes here ..........
https://www.amcub.net/energy/useful-information/energy-taxes/

sevenhills

n4t wrote: »

It doesn't seem correct that i'm being charged both 20% and 5% for my bill when it's for a house?

Thanks in advance

Your bills may be lower when we leave the EU.


“…if we leave the EU…fuel bills will be lower.”

“In 1993, VAT on household energy bills was imposed. This makes gas and electricity much more expensive. EU rules mean we cannot take VAT off those bills.”
Michael Gove, Boris Johnson and Gisela Stuart, 30 May 2016


https://fullfact.org/europe/what-could-happen-vat-and-energy-prices-if-we-leave-eu/

Robin9

n4t - could you attach a copy of the bill please - use something like imgur and make an obvious mistake in the link. Make sure you blank out the personal info.

cranford

As sevenhills says the government could remove VAT on gas and electricity which would save the average household £60 a year. However no doubt the government would raise the amount lost by measures such as raising income tax. They have to get the revenues from somewhere.

badmemory

sevenhills wrote: »

Your bills may be lower when we leave the EU.


“…if we leave the EU…fuel bills will be lower.”

I'll believe that when I see it. I'm still waiting to see where the money for extra police, teachers, doctors et al is going to come from.

btr30

It may be that one meter is classed as domestic use and attracts the 5% VAT, and De minimis is breached (33kWh per day for electricity, 145 kWh per day for gas) on another meter thus attracting 20% VAT