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How to find out about your VAT rate on gas and electricity

If you’re a business owner in the United Kingdom and are currently paying the standard 20% VAT on energy bills you might not be aware of the savings you could be making.

LES Guide - Piggy Bank

Let the experts at Love Energy Savings guide you through the process; you could be eligible for a lower VAT rate of 5% (and perhaps an exemption from the Climate Change Levy). Whether it is your VAT on electricity or gas bills, we will help you understand where you can make savings.


VAT on electricity bills

The current VAT rate on business electricity is 20% - this is the standard. However, if the below applies to your business, you will be eligible for a lower rate:

De minimis – low energy consumption

The de minimis rule – meaning in Latin minimal things – applies to either your gas or electricity rates.

If your business electricity usage is below the average 33kWh per day, or 1,000 kWh per month, you will be eligible for lower VAT on electricity.


VAT on gas bills

If your gas usage is below the average 145kWh per day (5 therms), or 4,397kWh per month (150 therms), you will also be eligible for lower VAT on your energy.

(Note – the assessment of your energy consumption can be made by you or your supplier, either as a meter reading or as an estimate).


VAT on solar panels

LES Guide - Solar Panels

The current VAT on solar panels remains at 5%, despite talks of a HMRC tax hike that would increase the rate to 20%. This 5% is the standard, however, and no further savings can be made.


Can my charity make savings too?

Absolutely. You should remember that these reductions will not be automatically applied to your energy bills, so you will need to let your provider know that you represent a non-profit organisation. The sooner you do this, the better.

LES Guide - BHF

You can also claim for a rebate for any overpayments you may have been making over the last four years. Love Energy Savings can advise you every step of the way, so don’t hesitate to get in touch.

As our team has experience with so many businesses, profit and non-profit, we know for a fact that there are a lot of charities who are not aware of the savings that they can make.

Again, it depends on how much energy is consumed. Why not perform a free energy comparison today, so we can get your charity the best deal while looking at your reductions at the same time?


Are you paying the wrong VAT rate?

There are a whole host of reasons as to why your charity is paying the wrong VAT rate. Most of the time, VAT overpayments are easily rectifiable. Do the following questions apply?

- Have you switched your energy supplier or changed tariff without taking the above into consideration?

- Have you changed legal entity? Maybe you’ve recently changed from being a school to being an academy, meaning you have left your local authority?

- Have you changed the legal name of your non-profit organisation or charity?


Which organisations qualify for CCL exemption and reduced VAT?

If you are unsure who exactly applies for these savings, get in touch with the specialists at Love Energy Savings. For now, take a look at the list below to see if you fit the criteria.

- Free schools and academies

- Charities

- Organisations consuming less energy than the average

- Self-catering holiday accommodation (holiday parks, etc.)

- Student halls, accommodation and boarding houses

- Care homes


I’m eligible but how do I apply?

Simply fill in one of the VAT declaration forms attached at the bottom of the page. They are from a number of providers, so all you have to do is find your provider, download the form and send it off - the rest will be taken care of.

British Gas


Crown Gas & Oil

EDF Energy



Opus Energy

Scottish Power


As always, if you have any issues, please do not hesitate to get in touch. Call us on 0800 9888 375 or email on