Shetland Heat Energy and Power
t: 01595 745151

SHEAP Billing Guide

Monthly Direct Debit

you will receive 2 invoices a year

31st March

30th September

The agreed amount will be collected from your account on or around 5th of every month 

Quarterly Direct Debit

You will receive 4 invoices a year

31st March 

30th June

30th September

31st December

Full payment for these invoices will be collected by direct debit

Quarterly invoicing

You will receive a quarterly invoice for the full amount of your usage

31st March

30th June

30th September

31st December

PAYMENT CAN BE MADE BY TELEPHONE ON 01595 745151

THROUGH WEBSITE AT www.sheap-ltd.co.uk

THROUGH SIC WEBSITE AT www.shetland.gov.uk/online_payments/

BY CASH, DEBIT CARD OR CHEQUE AT THE OFFICE 

AT sic CASHIERS BY CHEQUE/DEBIT or credit CARD 

BY POST BY CHEQUE 

BANK TRANSFER TO SORT CODE 80-08-82 ACCOUNT 00729726

Prepayment

You will not receive any invoices as you pay for your usage as you go by topping up your pre-payment card


If you would like to discuss payment options please contact us on 01595 745151 or e-mail mail.sheap@shetland.gov.uk


VAT Guidance for Businesses

Unless we are otherwise informed, VAT for your business energy is charged at the current standard rate of VAT (20%).  However, your organisation may be eligible for the reduced VAT rate (5%) if your energy supply is used wholly or partly for domestic or charitable non-business use, or ‘qualifying use’.

Qualifying Use Customers

Qualifying use means:

  • ‘Domestic use’ or
  • ‘Charity non-business use’.

If your property consumes energy for domestic or charity use as well as commercial, usage for this part of the supply will qualify for the reduced rate (5%).

Examples of Domestic Use:

  • Houses, flats or other dwellings
  • Children’s homes 
  • Homes providing care for the elderly or disabled, people with a past or present dependence on alcohol or drugs, people with a past of present mental disorder
  • Hospices
  • Institutions that are a sole or main residence of at least 90% of their residents
  • Monasteries, nunneries and similar religious communities
  • School and university residential accommodation for students or pupils
  • Self-catering holiday accommodation
  • Armed forces residential accommodation
  • Caravans and houseboats. 

Domestic Use Excludes:

  • Hospitals
  • Prisons and similar institutions
  • Hotels, inns or similar establishments.

Charity Non-Business Use:

Where a charity does not make a charge for its services, its activities are generally non-business.

Mixed Use:

Where a business premise is partly used for qualifying use and partly for non-qualifying use, and 60% or more of the energy is for the former, the entire supply can be treated as being eligible for VAT at the reduced rate of 5%. 

If less than 60% of the energy is for qualifying use, different VAT treatments should apply to both the qualifying and non-qualifying proportions.   

VAT Declaration Certificate

You will need to complete a VAT Declaration Certificate for the reduced rate to be applied.  

Until your VAT Declaration Certificate is received, we are required by HMRC to charge you the standard VAT rate.  We are unable to back-date declarations.

Please complete one form per qualifying property.

Download Form

Once you have completed the form, please print, sign and return by email to mail.sheap@shetland.gov.uk or by post to Shetland Heat Energy and Power Ltd, Marina Business Park, Gremista, Lerwick, Shetland, ZE1 0TA.  

If you are using your property solely for business purposes you do not need to complete this form, your account will be set up on a default VAT rate of 20%.  

Further Information 

Contact your local HMRC VAT office or consult VAT Notices 700, 701/1 & 701/19 if in doubt of your status.