louis Matan
Admin, Ops, IT & Finance
VAT reduction from 5% to 0% on electricity
Anonymous user Posted 3 days ago
Hi all, has anyone started looking at the new VAT treatment for electricity from 1 October 2026 and, in particular, how to apply the 60% qualifying-use test for mixed-use buildings?
We have one building with:
- Ground floor – back-office teams (Finance, IT, CEO, Facilities), plus a shared meeting room and pantry
- First floor – fundraising and charity programme teams
- Second floor – rented to a commercial tenant
I’m particularly interested in how others are dealing with back-office/support functions such as Finance, IT and Facilities. Are you treating these as non-business, or splitting them based on the activities they support?
Also, what methodology are you using to split electricity use — floor space, staff numbers, occupancy, actual usage, or something else?
Would be great to hear how other charities are approaching this. Thanks!
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