VAT on energy bills

MWT

Radio01 said:

I probably could get to the meter to get readings. But without the bills to cross reference them, surely the numbers mean very little? 

The VAT reduction is based on kWh used so you can check that direct from the meter.

As for him being as exposed as you, not really...  you have no agreement that he has to charge you only what he pays for the electricity, so his bills are potentially irrelevant...

If this was a domestic residential situation you would have more 'law' on your side, but even then, enforcement is tricky.

If the workshop is good for you and you want to stay there then I'd suggest you get a proper agreement in place and negotiate what you need in regards to the electricity, or take responsibility for it yourself.

... but if he is paying domestic electricity rates, it is possible that even with his dodgy accounting, it could still be cheaper than a genuine commercial supply contract... so tread carefully

booshya

Radio01 said:

Hi all. Looking for some advice. I’m currently renting a workshop that is a barn on a farm. I’m not sure if this classes as a commercial property rental but obviously I do use it to make products I sell. Anyway, I have just received my energy bill from the landlord/farmer, which is quite high. My first question is, I’m pretty sure he is only paying 5% VAT on his bills as it’s mixed commercial and residential dwelling. I recall seeing a bill last year that showed 5% VAT. He is charging me the full 20% VAT on my bill, should he be passing on the 5% reduction he gets to me? The bill is in his nameC I am in essence just paying it.

Next, and this is where it gets a bit fishy, I questioned him on the amount and asked to see a bill to see what tarif I am on and what I’m paying per KW. He doesn’t seem willing to show me the bills for some reason. He did send me his statement of account for the year and highlighted my bills, however I’m pretty sure the statement off account is showing what’s coming into and out of his account includes the vat he is paying, which he is then adding 20% vat onto, so even if he is within his rights to charge me the 20% vat, it seems like it’s on top of the 5% he’s paying. 

I guess the questions are, can he charge me the 20% vat or should he be passing on what he is paying, and am I within my rights to ask to see the bill before I pay to make sure I’m paying only for what I have used? 

Thanks

It sounds commercial to me. Or do you live in a barn???
What does your rental agreement say about the usage?

Why is the bill of the separately metered barn in the name of the farmer and not you???
Why are you paying someone else's bill i.e. that of the farmer?

How come you need to ask to see the bill if you are paying it??? 
How is this separaterly metered barn which he lets out to you considered mixed use by the farmer?

Does all sound very fishy to me.

Non-residential usage is usally charged @ 20%, but there is a 5% rate for low usage/micro business.
Unless you do qualify VAT @ 5%, you should probably also be being charged a Climate Change Levy.

Any VAT demanded must be supported by a fully compliant VAT invoice.

booshya

Radio01 said:

Hi QrizB

I am Vat registered. But I was under the impression that you cannot claim back VAT for energy. When I “ask google” that is also the answer I get. 

..

Google is often said to be your friend.
But it sounds like you need an accountant rather than a friend.

Curiousgirl1

If you now have the full barn & it has its own meter, why don’t you contact the energy company & set up a new account?