A Standard Industry Classification (SIC) code is used by the Office of National Statistics (ONS)to describe your company’s primary business activity. These codes help categorise businesses into specific industries for various regulatory and statistical purposes. The SIC codes are organised into Divisions, each further divided into classes and sub-classes.
For the water industry, the relevant VAT rules refer to the 1980 SIC code list. Although updated versions of the SIC list exist (from 1992, 1997, and 2007), the 1980 list remains the reference for VAT purposes. If your company files an annual return with Companies House , you’re required to report up to four SIC codes representing your business activities, with the primary code determining VAT obligations on water supplied.
If you run an unincorporated business and haven’t determined your primary SIC code before, you can use the 1980 SIC list and additional resources from the ONS to find the correct code.