29/08/2026
There are two taxes on your energy bill. VAT, which you know about, and the Climate Change Levy, which almost nobody reads.
Since April the levy has been 0.801p for every kWh you use, the same on electricity and on gas. If you are VAT registered you can claim your VAT back. You cannot claim the levy back at all, and you pay VAT on top of it.
Both drop if HMRC counts your supply as domestic. Two ways that happens.
The first is automatic and needs no form. An electricity supply of 1,000 kWh a month or less, or gas of 4,397 kWh a month or less, counts as domestic no matter what it powers. That is 33 kWh of electricity a day. Your main pub meter will be well over it. A second meter might not be, and pubs often have one: an outbuilding, a cellar block, a site closed for the winter. Those quietly get charged the full rate. One catch worth knowing is that if a site has several meters, they get added together for this test.
The second needs a form. If you live above the pub, the share of the energy running your home should be at the reduced rate with no levy on it. Be realistic about the size of that share, because the flat is rarely more than half of what a trading pub uses. Whatever the split, the supplier has to have a qualifying-use certificate on file. No certificate, no reduced rate, and most pubs have never sent one.
Worth knowing before winter: from 1 October to 31 March, VAT on qualifying electricity in England, Scotland and Wales is 0% instead of 5%. Gas stays at 5%.
Dig out a recent bill and look at two things: the VAT percentage, and whether there is a levy line. Or send it to us and we will check every meter you have. 02476 328995.