A recent announcement by the Prime Minster has centred on a cut to VAT on domestic electricity bills from 1 October. While this does primarily effect households there are some small businesses that will be eligible for the relief.
From 1 October the VAT rate on domestic electricity will be cut from 5% to 0%, which is estimated to save households around £45 a year. While this is good for households in general you may be asking how this effects my business.
As part of the announcement the Government did confirm that small businesses can qualify for the domestic energy VAT relief, if they are not VAT registered, meaning they will also benefit from this relief. However, this relief is going to end on 31 March 2027 so it’s very important to make the claim as soon as possible to get the most out of it.
The first step is to work out if your business would qualify, which isn’t necessarily the most straightforward as the conditions are very specific. If you would like assistance on working out if you qualify, and if you do on making the claim, please get in touch with us.
