Could you be entitled to a VAT and CCL reduction?

Recent studies show that 37% of charities did not know that they are entitled to claim reduced VAT and CCL exemption! Moreover 74% are unaware that rebates for overpayments can be claimed back for up to 5 years. Good news though, it’s not too late to act now!

Following the Government’s decision to terminate the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) on March 31st 2019 the CCL would become the UK’s only carbon tax on energy bills.

As such, the CCL rates will be uplifted from April 2019 to cover the costs of the outgoing CRC scheme. Electricity unit rates have increased by 45% from 0.00583 to 0.00847 and gas unit rates have risen by 67% from 0.00203 to 0.00339!

The VAT rules aren’t very clear for charities and non-profit organisations. Energy used for non-business purposes are able to claim 5% VAT reduction rather than the standard 20%! In addition to that, you’ll find charities and non-profits will also be exempt from the Climate Change Levy (CCL). This reduces energy bill costs by a further 5%! Your charity or non-profit organisation must be VAT registered in order to only be charged the reduced VAT rates

Suppliers tend to leave this out and don’t automatically apply these discounts.So, charities, care homes and other non-profit businesses are left paying more than they should for their energy!

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