Metered service meaning

This Practice Note explains the VAT treatment of non-residential service charges. General position Service charges are ordinarily payable to the landlord under a lease or licence, much like rent, and therefore reflect the same VAT treatment as the rent. This is because there is no distinct supply—the rent and service charge together constitute payment for a letting of serviced premises. Certain charges may, however, need alternative treatment: there may be a separate supply, typically where the tenant pays solely according to its own consumption—metered utility charges are an example the amount may be a disbursement, where the landlord settles and recharges a cost that is legally the tenant’s responsibility—business rates are an example, if the tenant is the rateable person These and other specific categories of charge are considered in more detail below. Exceptions to the general position The position differs: if a party other than the landlord, such as a management company, is contractually required...

How are electricity and gas typically metered in the UK? Across the UK, most domestic and non-domestic premises have main, primary meters that record whole-building electricity and gas use for the purpose of calculating utilities charges. These devices present a continuous, running total of consumption. Where smart meters or AMR equipment (see below) are not installed, meters must be read by hand, either by the utility supplier or the occupier of the building. The figures are noted and compared with the previous reading to determine usage over the period, and during any interval without a read, consumption is commonly estimated. Some properties also deploy sub-meters (secondary meters), which are local meters fitted to track the amount of energy used in a specific zone or by a particular piece of equipment. This practice is most common in non-domestic buildings, for example to measure electricity used by tenants, or to monitor the operation of plant equipment, usually to inform service charge calculation. These meters, like the main meters, are frequently read...