Paying VAT on water charges

Why do you charge VAT?
We are required to add VAT to our charges for water which we supply to customers whose main business activity is considered to be industrial in accordance witht he Standard Industrial Classification (SIC) list 1980.  These activities cover utilities, construction, mining textile, manufacturing and engineering industries.

What is a SIC code?
It is a code used by the Office of National Statistics to classify businesses by the economic activity in which they are engaged.
If your business has more than one activity or has different activities at various locations, then we require details of the main activity for the business as a whole and we will then accept this for all of your business locations.
If we do not hold a valid SIC code we will charge you VAT by default until you either provide us with one or tell us your main business activity.     

Why do you use the 1980 version of the SIC list when it has been updated in 1992 & 2003
The law for VAT purposes is based on the 1980 SIC list. If you cannot provide a code from the 1980 list, we will be happy to accept a code from 2003 list provided it accords with the description of your main business activity.

How will my account be updated once I give you either my SIC Code or business activity?
Currently we are required by VAT law to make corrections if we discover errors made in our records up to 4 years ago.

I am a household customer should I be paying VAT?
Household customers don't usually pay VAT.  However, if a company whose main business activity attracts VAT and is responsible for water charges for a residential property, we are required to add VAT to our charges, unless the Company lets or intends to let the property for rent.

If your details have changed or we are charging you VAT by default, please complete our simple online form or speak to one of our agents directly on 08457 500 500.