Business Energy VAT Checker
Are you paying 20% VAT when you should pay less?Most businesses pay 20% VAT on their energy. But if you only use a little energy, or it goes to homes, care homes or a charity's free activities, you should pay less. If your bill still charges 20%, you're paying too much every month, and you could be owed money back.
Send us a bill and we'll check it for you. Or answer a few quick questions and see straight away if you could be owed a refund. Checking the Climate Change Levy instead? Use our Climate Change Levy checker.
How would you like to check?
Upload your bill
A recent electricity or gas bill. We'll check the VAT against how your site is used and let you know what we find. One of our team checks every bill.
Thanks, we've got your bill
Here's what happens next. We virus check it, then one of our team reads it through and gets in touch with you about what we find. Nothing is decided automatically: a person checks every bill.
Your reference: -. Keep it if you'd like to ask us about your bill.
Step 1 of 3
Who are we checking for?
Just your company name and the site's postcode. We keep them when you press the button, so our team can help if you're overpaying.
Thanks. On to the questions.
Step 2 of 3
Quick questions
Tap the answer that fits. Each one decides what we ask next.
Got your bill to hand?
Making your code...
- 1Open your phone's camera and point it at the code.
- 2Tap the link that appears, and agree on your phone.
- 3Take a photo of each page, then press Done.
From your phone
The code works for 20 minutes and for one phone. Nothing is sent until you agree on your phone.
Linking to your computer...
Or email your bill to [email protected], or call us on 01273 914000.
Ready to send
Please tick both boxes first.
How we use what you send: Privacy Notice. We virus check every bill.
Lay it flat, in good light, with every figure readable. Up to 6 pages.
Stopped
Your photos have been deleted and the link no longer works.
Step 3 of 3
Your result
One of our team will be in touch soon to talk through next steps.
Thanks. One of our team will call you soon.
Want to know more?
Thanks, we've got your bill
Here's what happens next. We virus check it, then one of our team reads it through and gets in touch with you about what we find. Nothing is decided automatically: a person checks every bill.
Your reference: -. Keep it if you'd like to ask us about your bill.
Rough figures are fine. We'll add them to your enquiry so our team can check them.
We can still cut your bill
The tax may be right, but the price you pay is where most businesses save. Tell us when your contract ends and we'll compare prices from suitable suppliers before your renewal, so you never roll onto out-of-contract rates.
Thanks. We'll be in touch before your renewal window opens.
Rather talk now? Call 01273 914000.
This is a check of your answers against HMRC's rules. It isn't tax advice. Your supplier sets the VAT from what you actually use and any certificate you've given them, so we always check your bills before we confirm anything.
Anything else we can check for you?
We've got your bill, so there's nothing more to send. Tick what else you'd like us to check on it.
Thanks. We'll check those on your bill too.
Try our other tools:
- Business Energy VAT Checker See if you're paying 20% VAT when you should pay less.
- Climate Change Levy checker See if you're paying a levy you don't owe.
- MPAN checker See what the numbers on your electricity bill mean.
- Business energy savings calculator See what you pay a year, and what a better rate would save you.
- Are you ready for MHHS? Our new MHHS check is coming soon. Leave your details and we'll be in touch.
- Business energy bill check Upload your bill once and we'll check the VAT, the Climate Change Levy, your rates and standing charges, and look for mistakes.
We'll fill in the details you've already given us.
What VAT rate should you pay?
There are three VAT rates on business energy:
- 20%: The standard rate. Most businesses pay this on their energy.
- 5%: The reduced rate. For a small supply (using only a little energy at a site), and for energy used where people live or for a charity's free activities.
- 0%: A temporary zero rate from 1 October 2026 to 30 June 2027. It's for electricity in England, Scotland and Wales that would otherwise be 5%. Gas, and electricity in Northern Ireland, stay at 5%.
These are HMRC's rates, as of October 2026. If your bill is still at 5% for electricity you used after 1 October 2026, it's worth a second look.
We'll help you make sure you're paying the right rate. Our Energy Team will check your bills, help you get your certificate right and take it up with your supplier if you've been paying too much.
Who should pay less than 20%?
- Small users: On average, no more than 33 kWh of electricity a day (1,000 kWh a month) or 145 kWh of gas a day (4,397 kWh a month) at one site. No certificate needed.
- Places people live: Flats, care homes, children's homes, hospices and other residential accommodation. Hotels don't count.
- Charities: Energy for activities a charity doesn't charge for, known as non-business use.
- Mixed sites: If part of a site is business, the 60% rule decides how much gets the lower rate.
Want the detail? Read our guide to VAT on business electricity.
Get your certificate right
If part of your site is business, your supplier needs a signed VAT certificate for each site. It says what percentage of the energy gets the lower rate. Without it, your supplier can charge 20%. Get the percentage wrong and you could face a penalty.
That's where we come in. We'll go through each meter with you, help you get the certificate right, chase any refund with your supplier and check every bill after. Want to know more about the numbers on your bill? Try our MPAN checker or see how to read your business energy bill.
Questions people ask
What VAT rate should I pay on business energy?
Most businesses pay 20% VAT on their energy. You should pay 5% if you only use a little energy, or if the energy goes to homes, care homes or a charity's free activities. From 1 October 2026 to 30 June 2027, electricity in England, Scotland and Wales that would be 5% is 0% instead. Gas stays at 5%.
How little energy do I need to use to pay 5%?
On average, no more than 33 kWh of electricity a day (1,000 kWh a month, about 12,045 kWh a year), or 145 kWh of gas a day (4,397 kWh a month, about 52,925 kWh a year), at one site. You don't need a certificate for this.
What is the 60% rule?
If 60% or more of the energy at a site goes to homes or a charity's free activities, all of it gets the lower rate. Under 60%, only that part does, and the rest is charged at 20%. You tell your supplier the percentage on a signed VAT certificate.
Can I get overpaid VAT back?
Often, yes. Your supplier can put VAT mistakes right for up to four years back. We'll check your bills and take it up with your supplier for you.
My bill looks wrong. What do I do now?
Send it to us. We'll check the VAT against how your site is used, help you get your certificate right if you need one, and take it up with your supplier for you. Call our Energy Team on 01273 914000 or upload a recent bill.
No pressure, just a straightforward check from people who know what to look for. Call us on 01273 914000.
Words we use on this page
- VAT (value added tax)
- A tax on most goods and services, energy included. On business energy it's 20%, 5% or 0%, depending on how much you use and what you use it for. Source: GOV.UK, VAT rates
- Standard rate
- The normal rate of VAT, 20%. Business energy is charged at 20% unless it's a small supply or goes to a qualifying use. Source: HMRC, Fuel and power (VAT Notice 701/19)
- Reduced rate
- The lower rate of VAT, 5%. Energy gets it when it's a small supply or goes to a qualifying use, such as homes or a charity's free activities. Gas, and electricity in Northern Ireland, are charged 5% for these. Source: HMRC, Fuel and power (VAT Notice 701/19)
- Temporary zero rate
- From 1 October 2026 to 30 June 2027, electricity in England, Scotland and Wales that would get the 5% rate is charged 0% instead. Gas, and electricity in Northern Ireland, stay at 5%. Source: HMRC, Fuel and power (VAT Notice 701/19)
- Small supply (de minimis)
- A supply small enough to get the 5% rate even for a business: on average no more than 33 kWh a day (1,000 kWh a month) of electricity, or 145 kWh a day (4,397 kWh a month) of gas, at one site. Small supplies don't pay the Climate Change Levy either. Source: HMRC, Fuel and power (VAT Notice 701/19)
- Qualifying use
- Energy used in homes and other places people live, energy for a charity's non-business activities, and small supplies. These get the lower rate of VAT. Source: HMRC, Fuel and power (VAT Notice 701/19)
- Residential accommodation
- Houses and flats, care homes, children's homes, hospices, student halls, caravans, houseboats and self-catering holiday lets all count. Hotels, hospitals and prisons don't. Source: HMRC, Fuel and power (VAT Notice 701/19)
- Non-business use
- Activities a charity doesn't charge for. Energy used for them gets the lower rate of VAT and doesn't pay the Climate Change Levy. Activities the charity charges for are business use. Source: HMRC, Fuel and power (VAT Notice 701/19)
- 60% rule
- If 60% or more of the energy at a site goes to a qualifying use, the whole supply gets the lower rate of VAT. Under 60%, only that part does, and the rest is charged at 20%. Source: HMRC, Fuel and power (VAT Notice 701/19)
- VAT certificate
- A signed form you give your supplier saying what percentage of the energy at a site goes to a qualifying use. You need one for each site. Your supplier has to check it, so they may ask for your workings. Getting it wrong can mean a penalty. Source: HMRC, Fuel and power (VAT Notice 701/19)
- EAC (Estimated Annual Consumption)
- The electricity industry's estimate of how many kWh your meter uses in a year, used in settlement until real readings replace it. It's often on your bill or contract. Source: Elexon glossary, estimated annual consumption
- kWh (kilowatt-hour)
- The unit electricity is billed in: using 1 kilowatt of power for one hour. A 2 kW heater left on for an hour uses 2 kWh.