Bar shows the standing charge share of the bill before VAT. Rates checked 22 October 2026 on GOV.UK: CCL 0.801p per kWh from 1 April 2026; VAT standard 20 %, reduced 5 %; gas de minimis 145 kWh a day. This business gas cost calculator is an estimate; your supplier’s bill decides the final figures.
Formula and breakdown
n/a
n/a
n/a
n/a
This business gas cost calculator works out what a UK business site pays for mains gas over any period from its meter reading or kWh, contract unit rate, standing charge, Climate Change Levy and VAT, and shows the bill with and without VAT. It is for small business owners, landlords of commercial premises and bookkeepers in Great Britain and Northern Ireland who want to check a bill or budget a new contract.
Quick answer: A business gas cost calculator converts meter readings to kWh, then adds kWh times the unit rate, days times the standing charge and kWh times the Climate Change Levy of 0.801p, then VAT at 20 per cent. Sites averaging 145 kWh a day or less pay 5 per cent VAT and no CCL.
What Is a Business Gas Cost Calculator?
A business gas cost calculator is a tool that rebuilds a non-domestic gas bill from its parts so you can see each charge, the VAT and the total. In plain words: gas used in kWh equals cubic metres times the volume correction factor times the calorific value divided by 3.6; then energy charge equals kWh times unit rate, standing charge equals days times the daily charge, CCL equals kWh times the levy rate, and VAT is added to the sum.
The calculator starts with example rates, because business gas is sold on individual contracts rather than at a published capped price. Replace them with the unit rate and standing charge from your contract or latest bill, both excluding VAT.
How Do You Use the Business Gas Cost Calculator?
- Choose whether your figure is in kWh, cubic metres or hundreds of cubic feet.
- Enter the gas used in the period. For meter units, copy the volume correction factor and calorific value from your bill.
- Enter the number of days the bill or budget covers.
- Type the unit rate and daily standing charge from your contract, and any other charges on the bill.
- Choose the CCL treatment and VAT treatment. Automatic VAT checks the 145 kWh a day de minimis for you.
- Read the total including VAT, the total excluding VAT and the all-in price per kWh, then open the breakdown to check each line.
How Do You Convert Gas Meter Readings to kWh?
Multiply the cubic metres used by the volume correction factor and the calorific value in megajoules per cubic metre, then divide by 3.6, because one kilowatt-hour equals 3.6 megajoules. For an imperial meter, multiply hundreds of cubic feet by 100 and by 0.0283168 to get cubic metres first.
The Gas (Calculation of Thermal Energy) Regulations 1996 set out how energy is charged on the basis of the gas’s calorific value, with volumes adjusted for temperature and pressure. Your supplier prints the correction factor and calorific value used for each bill, so always copy them into the business gas cost calculator from there. The 1 cubic foot to 0.028316846592 cubic metre factor and the 3.6 MJ per kWh factor are exact unit conversions.
| Meter reading used | Cubic metres | kWh at example factors (1.02264 and 39.5 MJ per m³) |
|---|---|---|
| 100 m³ | 100 | 1,122 |
| 1,000 m³ | 1,000 | 11,221 |
| 100 hundred ft³ | 283.17 | 3,177 |
| 1,500 hundred ft³ | 4,247.53 | 47,660 |
What Is the Climate Change Levy on Gas in 2026?
From 1 April 2026 the main rate of Climate Change Levy on natural gas is £0.00801 per kWh, or 0.801p, the same rate as electricity. GOV.UK’s CCL rates notice for April 2026 sets the reduced rate for gas under a Climate Change Agreement at 11 per cent of the main rate, which is 0.08811p per kWh.
At the main rate, a site using 80,000 kWh of gas a year pays £640.80 of CCL before VAT. HMRC’s VAT notice says CCL is included in the value for VAT, so VAT is charged on the levy as well.
When Does a Business Pay 5 Per Cent VAT on Gas?
Business gas is standard-rated at 20 per cent unless it is for qualifying use or falls under the de minimis limit of an average 145 kWh a day, which is 5 therms, or 4,397 kWh a month per premises. Qualifying use means domestic use or a charity’s non-business use, and if 60 per cent or more of a supply is for qualifying use, the whole supply is charged at the reduced rate of 5 per cent.
HMRC’s VAT on fuel and power notice says CCL does not apply to domestic use, charity non-business use or de minimis supplies. The temporary 0 per cent rate from 1 October 2026 covers qualifying electricity only, so reduced-rate gas stays at 5 per cent.
| Type of gas supply | VAT | CCL |
|---|---|---|
| Business use above 145 kWh a day | 20 % | 0.801p per kWh |
| Business use with a Climate Change Agreement | 20 % | 0.08811p per kWh (11 %) |
| De minimis: 145 kWh a day or less | 5 % | Not charged |
| Domestic use or charity non-business use | 5 % | Not charged |
| Mixed use, 60 % or more qualifying | 5 % on the whole supply | Check with your supplier |
How Can You Tell Whether Your Gas Bill Is Reasonable?
Compare the all-in price per kWh excluding VAT from the business gas cost calculator with DESNZ’s quarterly averages for non-domestic gas by size band, published in Quarterly Energy Prices tables 3.4.1 and 3.4.2. Small sites pay a higher all-in price because the standing charge is spread over fewer kWh.
If your premises use a lot of gas for space heating, the heat pump running cost calculator compares a gas boiler with a heat pump, and the heater running cost calculator prices electric heaters for rooms used only now and then. For the electricity side of the same site, use the business electricity cost calculator. Any work on gas pipes, meters or appliances must be done by a Gas Safe registered engineer.
Worked Example: A Restaurant Using 80,000 kWh a Year
Example: a restaurant in Manchester uses 80,000 kWh of gas a year at an example 7.00p per kWh and 80.00p a day, both excluding VAT. Energy costs £5,600.00, the standing charge £292.00 and CCL £640.80, a total of £6,532.80 before VAT. Average use is 219.2 kWh a day, above the de minimis, so VAT at 20 per cent adds £1,306.56 and the business gas cost calculator shows £7,839.36.
Example: a small office in Glasgow on the same rates uses 40,000 kWh a year, an average of 109.6 kWh a day. That is within the de minimis, so no CCL is charged and VAT is 5 per cent: £2,800.00 plus £292.00 = £3,092.00, plus £154.60 VAT, a total of £3,246.60. A metered example: 2,000 m³ over 30 days at the example factors is 22,441 kWh, which costs £2,129.57 including VAT at 20 per cent.
Frequently Asked Questions
How is a business gas bill calculated?
Convert the meter reading to kWh, multiply by the unit rate, add the daily standing charge times the days, add the Climate Change Levy at 0.801p per kWh and any other charges, then add VAT, normally at 20 per cent. VAT is charged on the levy too.
What is the Climate Change Levy rate for gas in 2026?
From 1 April 2026 the main rate for natural gas is £0.00801 per kWh, which is 0.801p, the same as electricity. Businesses with a Climate Change Agreement pay 11 per cent of the main rate for gas, which is 0.08811p per kWh.
What is the gas de minimis limit for 5 per cent VAT?
Supplies averaging no more than 145 kWh a day, which is 5 therms, or 4,397 kWh a month per premises are charged at the reduced rate of 5 per cent whatever the use. Above that, business gas is standard-rated at 20 per cent unless the use qualifies.
Does the 0 per cent VAT cut apply to business gas?
No. The temporary 0 per cent rate from 1 October 2026 to 31 March 2027 covers qualifying supplies of electricity in Great Britain. Qualifying and de minimis gas supplies stay at the reduced rate of 5 per cent, and other business gas at 20 per cent.
How do I convert cubic metres of gas to kWh?
Multiply cubic metres by the volume correction factor and the calorific value shown on your bill, then divide by 3.6. With example factors of 1.02264 and 39.5 MJ per cubic metre, 1,000 cubic metres is about 11,221 kWh.
Is CCL charged on small business gas supplies?
Not on supplies within the de minimis limit. HMRC’s VAT notice says CCL does not apply to domestic use, charity non-business use or de minimis supplies. Above the limit, CCL is charged on every kWh at 0.801p unless a Climate Change Agreement reduces it.
Checked October 2026 by the Solaxyra Editorial Team. Sources: GOV.UK: Climate Change Levy rates from 1 April 2026, HMRC: VAT on fuel and power (Notice 701/19), GOV.UK: VAT rates, Gas (Calculation of Thermal Energy) Regulations 1996, Wikipedia: Kilowatt-hour, Wikipedia: Cubic foot, DESNZ: Non-domestic gas and electricity prices.