5% VAT and CCL exemptions for charities – could you be due a rebate?

Saving money on what can often be astronomical energy bills is something we would all like to do. Thankfully, most charities (whether registered or not) and many non-profit making organisations can apply for significantly reduced VAT costs and even an exemption from the Climate Charge Levy (also known as CCL).

Many organisations are unaware that most charities both registered and non-registered qualify for savings on their VAT – down to the low rate of only 5%. In addition to this, most are completely unaware of the CCL that is being included in their energy bills.

How to reduce your energy bill VAT to 5% and be exempt from CCL

Making sure that your charity is no longer burdened with costs that they otherwise shouldn’t be is a relatively straightforward process. Firstly, you will need to find evidence that you are a registered charity.

This can either be your Charity Commission registration number, or a letter from HMRC. All that will be required after that is a letter to your energy supplier, outlining that you would like to be included in the 5% scheme and to be exempt from the CCL. This can also be done by filling out one of the forms below, specific for your energy supplier.

If you have been charged in the past at the higher rate of VAT, you may be eligible to earn that tax back in the form of a rebate from the company – and it could potentially be a huge windfall for your organisation.

Sectors who typically qualify for VAT & CCL reduction:

  • Charities
  • Care Homes
  • Businesses using under 1,000 kWh/month of electricity or 4,397 kWh/month of gas
  • Self-catering accommodation (incl. caravans)
  • Free schools and academies
  • Boarding housing and student accommodation

Common reasons for incorrect VAT billing:

  • Altering the name of your organisation
  • Contract renewal or switching provider
  • Changing the legal entity of your organisation

Could your charity be owed a rebate?

Rebates can be claimed for the last 4 years, which means that your refund could be for many thousands of pounds – all for filling in one of the forms below and sending it to the related business address.

Consider this. In June 2014 the financially savvy website ‘Make it Cheaper’ found that one particular school had been overcharged (are you ready for this) a gigantic £115,000. A phenomenal figure don’t you think? The school in this case had actually been billed too highly for VAT and CCL consumption for as many as 3 years.

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of charities unaware of VAT or CCL exemption
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of charities unaware of VAT rebates

VAT rebate forms

Simply choose the company that your energy is supplied through, download the form, print it out, fill it out and send it in – and the rest should be done for you. If your energy supplier isn’t listed below, please either get in touch with them directly, or send in a letter detailing the kinds of information shown on the forms below.

EON contact number

E.ON
E.ON, PO Box 9042, Sherwood Park, Annesley, Nottingham, NG15 5AZ
Download form

Gazprom Energy
Gazprom Energy, Bauhaus, 27 Quay Street, Manchester, Greater Manchester M3 3GY
Download form

CNG
CNG, CNG House, 5 Victoria Avenue, Harrogate, HG1 1EQ
Download form

British Gas
British Gas Business, Spinneyside, Penman Way, Grove Park Leicester, LE19 1SZ
Download form

Corona Energy
Corona Energy Ltd, Edward Hyde Building, 38 Clarendon Road Watford, WD17 1JW
Download form

EDF Energy
EDF Energy plc, Registration Department, Southdownview Road, Worthing, BN14 8NL
Download form

Haven Power
Haven Power Limited, The Havens, Ransomes Europark, Ipswich, IP3 9SJ
Download form

npower
npower Direct Limited, 2 Princes Way, Solihull West Midlands, B91 3ES
Download form

Opus Energy
Opus Customer Services, Royal Pavillion, 2 Summerhouse Rd, Northampton NN3 6BJ
Download form

Scottish Power
ScottishPower Energy Retail Limited, SME Contact Centre, PO Box 7111, Cathcart, Glasgow G44 4GP
Download form

SSE
Scottish & Southern Energy, Grampian House, 200 Dunkeld Rd, Perth, PH1 3GH
Download form

Further advice

If you would like to discuss this further with our financial partners at Pareto please call 08700 349 339. They are able to discuss any issue relating to VAT, tax and rebates – as well as the issues discussed above.