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Check the VAT on a communal electricity bill
Enter the details from a landlord or communal electricity bill to see the rate HMRC's guidance points to, and whether the bill needs splitting at 1 October 2026 or 31 March 2027. For the rules themselves, read our guide to VAT on communal electricity.
The guidance points to
0%
Add the rate on the bill
The 0% rate applies in Great Britain
From 1 October 2026 to 31 March 2027, electricity for domestic use in England, Wales and Scotland carries 0% VAT. Before and after that window the rate for domestic use is 5%. Check gov.uk for any extension before relying on the end date.
This supply counts as domestic use, whatever the amount
HMRC treats power for the common parts of a block of flats, such as corridors, lifts and stairways, as domestic use, whatever the amount. That includes power bought by the landlord, managing agent or residents' association for lifts, door entry, pumps and communal heating plant. The 33 kWh a day limit doesn't decide the rate here.
This is a check of what's on the bill, not tax advice. Whether a supply qualifies depends on how it's used, so your accountant or the supplier has the final word on the rate. We don't contact your supplier or HMRC, and we don't estimate refunds. Any correction to past bills is up to the supplier.
How the check works
The check applies the rules HMRC publishes for the temporary 0% rate. The rate itself is set by SI 2026/987, the Supplies of Domestic Electricity Order 2026 (opens in a new tab), and HMRC explains how it works in Revenue and Customs Brief 10 (2026) (opens in a new tab).
Whether a supply counts as domestic use comes from VAT Notice 701/19 Fuel and power (opens in a new tab) and the HMRC VAT Fuel and Power manual (opens in a new tab). The check applies the common parts rule for blocks of flats, the 33 kWh a day limit and the 60% rule for mixed supplies. Our guide to VAT on communal electricity explains each of them.
On a qualifying supply, a bill that runs across 1 October 2026 or 31 March 2027 will usually show two rates, so the check splits the bill period at those dates and counts the days either side. The 0% rate is due to end on 31 March 2027. Check gov.uk for any extension before relying on that date.
The check doesn't estimate refunds or say a bill is right or wrong. It shows what the guidance points to, so you know which bills are worth asking your supplier about.
Questions about checking a bill
A bill that runs across 1 October will usually show two rates on a qualifying supply, split by when the electricity was used. Suppliers split it using meter readings where they have them, and by the number of days where they don't. The same applies to a bill that runs across 31 March 2027.
Suppliers usually ask for a signed VAT declaration showing the percentage of the electricity used for the flats. If 60% or more is for the flats, the whole supply qualifies. Below 60%, the flats' share carries the domestic rate and the rest carries 20%. HMRC accepts any fair and reasonable way of working out the share.
The account holder signs the VAT declaration and asks the supplier. For a managed block that's usually your client, such as the landlord or residents' management company.
That's up to the supplier. Suppliers can correct VAT on past bills within four years, but whether they reissue them is their decision. Ask them directly.
No. This is a check of what's on the bill, not tax advice. Whether a supply qualifies depends on how it's used, so your accountant or the supplier has the final word on the rate. We don't contact your supplier or HMRC, and we don't estimate refunds.
Utility bill processing for property managers
Stratas reads electricity, gas and water bills for every block you manage, with the net, VAT and total checked on each one.