Most VAT registered businesses, including pubs, are charged a climate change levy (CCL) on their commercial energy usage, but domestic usage is exempt from the levy.
This means that pubs with private accommodation need to ensure they register this when signing up to the energy supplier as it is much more complicated to claim back energy rebates.
David Sheridan partner and owner at Kent-based Menzies LLP said: “When energy companies set up supply deals it is encumbent on the licensees to tell the company to apportion between domestic and trade.”
He advised licensees to run this past their accountants so they can ensure they are paying the correct VAT to HMRC.
Sheridan claimed that 75% to 80% of licensees don’t know what apportioning is.