How do I claim back overpaid VAT on business energy?

Last reviewed 2 September 2026 by Utilities Made Simple · independent, whole-of-market, supplier-paid — how we are paid

What you can recover

• The VAT difference — 20% charged against 5% due, so 15% of the net cost of every qualifying bill.
• The Climate Change Levy — 0.801p per kWh on both electricity and gas for 2026/27, which qualifying supplies are exempt from.
• Up to four years of past supply, subject to the supplier's records and yours.

On a care home or a busy village hall this can be several thousand pounds. On a small shop it is often a few hundred a year going forward, which still compounds.

The steps

1. Establish the route. Low usage, charitable non-business use, or 60% or more domestic use — see is my business eligible for 5% VAT?
2. Complete the supplier's declaration and state the date from which the qualifying use began, not just today's date. This is the step people miss, and it is what makes the claim retrospective.
3. Ask explicitly for a backdated adjustment and for CCL to be included.
4. Chase in writing after 30 days. These claims stall quietly rather than being refused.

If you have changed supplier during the period

Claim from each supplier for the period they billed you. Old suppliers are obliged to deal with it, though they are slower. Keep the old bills — without them the claim is harder to evidence.

Ask an energy specialist

If your question is not answered above, send it to us. A specialist answers personally, normally within one working day. No sales call, no obligation — and if the answer is "your deal is fine", that is what you will get.