The de minimis thresholds
Where electricity use is below 33 kWh per day or gas below 145 kWh per day, the reduced 5% VAT rate applies automatically and CCL should not be charged. Many small premises qualify without realising.
Qualifying use declarations
Charities, care homes and residential-use premises can claim the reduced rate through a VAT declaration certificate submitted to the supplier. Mixed-use premises can claim on the qualifying proportion.
Reclaiming overpaid VAT
Suppliers will generally backdate a correction by up to four years where the declaration is valid. For a small qualifying premises, that can be a four-figure refund from a single form.
Want this reviewed for your business?
Send us a recent bill and a consultant from our Cardiff office will tell you, honestly, whether you are paying more than you need to.