11:46 AM, 21st April 2020, About A year ago 1
I have a portfolio of 52 all residential HMO units and my question is what VAT rate should I be paying?
British Gas states more than 60% or more domestic is 5%.
Please can anyone confirm.
Thank you James
From British Gas >> https://www.britishgas.co.uk/business/help-and-support/billing-and-payments/VAT-reduction
“Your business might be eligible for a reduced rate of VAT at 5% on business energy if any, or all the following circumstances apply…
If your business uses energy for residential purposes such as a care home or student accommodation, the proportion of energy used for domestic reasons will quality for 5% VAT.
If more than 60% of your business energy is used for domestic reasons, the 5% rate of VAT will apply to the whole bill.
When your average daily consumption of energy is not more than the ‘de minimis’ limits set out by HMRC, then you are eligible to be charged 5% VAT on your gas and electricity bills.
Your average daily use must be no more than:
33kWh (1000 kWh per month) of business electricity
145 kWh or 5 therms (4397 kWh per month or 150 therms) of business gas”
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