What is classed as a utility bill?
So, what counts as a utility bill and what are the basic outgoings that your business must incur?
Essentially, a utility bill covers anything that keeps your business functioning. Every household and business in the UK will pay for, and have, most or all of these services. Your utilities will include the basics like water, business gas and business electricity, but there are other essentials that can be classed under the same category. And this is often where the confusion lies. Find out what classes as a utility bill below.
Is council tax a utility bill?
Council tax is a yearly charge that households have to pay to receive bin collections, roadworks and schools in their local area. When it comes to businesses, their properties are covered by business rates. But is council tax a utility bill?
While it counts as a household bill, it is not necessarily a utility bill. However, you will still need to factor this into your outgoings as it is a necessary cost.
Home-based businesses may have to pay both taxes, but you are not normally expected to pay business rates if:
- Only a small part of your home is used for your business, like a bedroom that is used partly as an office.
- You don’t use your home to sell goods or services to visitors – as opposed to selling goods by post.
- You don’t employ other people to work in your home.
- You don’t make renovations or alterations to your home that aren’t for domestic purposes; e.g., converting your garage into a beauty room.
Is a phone bill a utility bill?
Typically, phone bills are considered to be utility bills – however, this only refers to landlines rather than mobiles. The invoices sent out by telephone companies are utility bills, and they provide a service to the public at large – much like energy suppliers.
This bill is paid monthly and in full each time – you will pay the amount you have spent or a pre-agreed tariff.
Is broadband a utility bill?
It’s a vital aspect of any business, but is broadband a utility bill? Many people treat broadband as a new example of a utility, as it’s highly unlikely that you can run a business without it. The internet is needed for everyday business operations like communication and research, but is also used to keep the office running – from ordering supplies to submitting meter readings and paying bills.
Your broadband will generally cost the same each month, as you pre-agree the broadband speed you require for your premises. This will remain the same unless your provider changes the tariff.
Is TV licence a utility bill?
As a business, you may not be fussed about having a TV in the office – and with multiple streaming devices available, you might not be considering getting one. But is TV licence a utility bill? If you’re ever showing live TV (like the news) in your office space, then it’s vital that you’re covered by a licence. However, a TV licence isn’t typically counted as a utility bill, although it does need to be paid annually if you wish to use its services.
What are utilities priced at?
The cost of your business utilities can vary, depending on your location, local climate, how much energy you use and how big your premises are. As a general rule, the amount you pay for your utilities is relative to your gas and electricity usage – which will increase depending on the size of the building you own/pay for.
Now you know what counts as a utility bill, you can start saving on them. The best way to cut costs on your business energy? Speak to an expert utility broker with multiple connections and ample experience. At Utility Bidder, we work with 27+ energy suppliers to find our customers the best quotes for their business – so you know you always have the best, most competitive price. To start saving on your utility bills, contact us today.