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VAT on small businesses electricity

Can anyone help ?? I am running a small business that uses 10500 kwh of electric per year which means I should pay 5% vat  which the VAT office having confirmed . If I use over 12000 kwh yearly/ 33 kwh per day then the VAT goes to 20% + CCL ( climate change levy ) The problem is that I an not VAT registered and use more electric in winter  so the usage goes to just over 33kwh per day for approximately 6 months this makes a large difference to my electric bills but my yearly average daily usage is is 28,8 kwh per day so surely I should not be being charged at the higher VAT rate but the suppliers charge 20 % etc are they pocketing the 15% extra VAT  and CCL at the end of the year . 
Any ideas what I can do to help with this problem I cannot  use a VAT declaration form 
Thanks

Comments

  • Hasbeen
    Hasbeen Posts: 4,404 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 16 October 2020 at 10:51AM
    From below they do not use a yearly amount to calculate but a daily amount. So they are correct.

    And you are getting 6 months at the cheap rate!

    And would assume it is the UK Gov that gets the VAT etc not the utility company?  :)

    What is the rate of VAT on business electricity and gas?

    VAT on electricity and gas bills for businesses is usually charged at a rate of 20%. Some businesses will be able to pay a reduced rate of 5% VAT on energy bills if they use less than what is known as the de minimis threshold.

    The de minimis business electricity VAT rate is 33 kilowatt hours (kWh) or less of electricity per day, while the de minimis rate for VAT on gas is 145kWh or less of gas per day.

    This differs from the VAT on energy bills for domestic customers, where VAT on gas and VAT on electricity are both charged at 5%.

    The world is not ruined by the wickedness of the wicked, but by the weakness of the good. Napoleon
  • tim_p
    tim_p Posts: 883 Forumite
    Eighth Anniversary 500 Posts Name Dropper
    Any way you can look at how you’re consuming the ‘just over’ 33kWh / day in winter, see if there’s any way you can get this down, particularly if you’re that close to the actual break point. Obviously we’ve no idea what the business is and how youre using that electricity. 
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