Running your own business means making the most of your margin, which is why it’s important to take the time to do your homework and stay on top of everyday costs. But time is probably the one thing you don’t have much of, so we’re here to lend a hand and help turn down the heat on those gas bills.
The average business gas bill can seem daunting - they’re usually two or even three pages and contain all sorts of abbreviations and numbers that don’t really make a lot of sense. But once you break them down they’re pretty straightforward - here’s what you should look for:
Your bill will show the address where gas is being supplied, your account number and supplier contact details - which should also include an emergency number if your supply is cut or disrupted.
You may also find a statement summary showing the balance to pay taking into account payments already received.
Keep your bill safe because you’ll need your account number if you speak to your supplier - you’ll also need it for VAT purposes. Plus, the details on your most recent statement will be handy if you decide to switch to a better deal once you reach your renewal period.
In short - yes, you do. But, the amount of VAT can vary depending on the size and nature of your business.
The standard rate of VAT is 20%, but you may be eligible to the lower rate of 5% if you’re a microbusiness that uses less than 52,764 kWh of gas annually. You might also qualify for reduced VAT if you run a charity, or if more than 60% of your premises is for ‘domestic use’ - for example, student or self-catering holiday accommodation, residential care for the elderly, or hospices.
To apply for lower VAT on your gas, you’ll need to fill in a VAT declaration form which your supplier can provide.
The price you pay for your business gas isn’t just based on how much you use and its raw (wholesale) cost, a whole host of other expenses are built in too - such as:
This can be hard to measure. Naturally, average gas bills for small business will be less than those for larger enterprises, but it’s almost impossible to gauge by how much. That’s because business gas deals are tailored to your specific needs and there are no ready-made solutions, unlike domestic gas.
Several factors affect business gas bills - including where your business is located, its energy efficiency, and of course - how much you use. The simplest and fairest way to compare gas by supplier is to look at the price per kWh. As a rough guide, you can expect to pay:
|Business size||Unit rate per kWh||Standing charge per day|
|Microbusiness||4.1p - 4.5p||23p - 26p|
|Small business||3.8p - 4.0p||21p - 22p|
|Medium business||3.5p - 3.7p||18p - 20p|
Switching your business gas has never been easier. At GasPrices.co.uk, we do it all for you and it’s as simple as 1,2,3:
If you’re concerned about your heating cutting out - then don’t, because switching supplier won’t cause any disruption to your supply. In fact, the only thing you’re likely to notice is a boost in your business accounts as you start to make savings - so, pick up the phone, we’re just one call away.
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