Are you paying too much VAT on your fuel bills?

If you own holiday accommodation in the UK, you could be eligible to pay a reduced rate of VAT on your electricity and gas bills.

Does your business qualify for a discount?

If your electricity or gas supply is used wholly or partly for domestic or charitable non-business purposes, that part of the supply qualifies for the reduced rate of VAT and for exclusion from CCL (Climate Change Levy). This is known as “qualifying use”.

The following types of supply are considered “domestic use”:

  • Caravans solely for residential use either on a full-time, weekend or holiday basis.
  • Caravans hired out on a self-catering basis.
  • Shower/toilet blocks for the use of those staying in the caravan park.
  • Self-catering holiday accommodation.
  • Staff residential accommodation in a hotel or B&B establishment.

The percentage of qualifying use can vary between energy supplies to the same site. You therefore need to submit a separate Customer Declaration Certificate per fuel, per account, to advise what percentage of each supply meets the qualifying criteria (which is set by the government).

How to apply for the reduced rate

You can find more detailed information about all of this on the HMRC’s website. To apply for the reduced rate on your fuel, contact them on 0300 200 3700.