Charles, thank you for your reply.
If he is sourcing supply on one meter and it is not possible to separate business electricity from energy used for domestic setting and his total demand is greater than 33 kWh per day or 1,000 kWh per month, then he is most probably paying VAT at 20%.
You would qualify for reduced rate if the consumption was below the aforementioned usage and where the majority of electicity is used for domestic purposes.
There are a number of other exceptions to the 20 per cent rate of VAT. These include:
- Where the majority of the energy is used in a domestic setting
- Where the business is a home, hospice, rehabilitation residence or place of care for children, addicts, members of the armed forces, students or the elderly
- Where the business is a nunnery, monastery or other religious building
- Where the business is a self-catering holiday accommodation, house boat, caravan or where it is a primary residence for over 90 per cent of the people living there
- Where at least 60 per cent of the energy used supplies a premises meeting these criteria
My advice to you would be check with the owner if any of the above applies.I hope this is helpful and answers your question.