There are potentially thousands of charities all across the UK that are paying too much for their energy bills and could qualify for an energy rebate. Energy suppliers usually treat charities like small businesses when it comes to energy bills, but wrongly so. Unlike small businesses, charities are entitled to certain discounts on their energy bills.
Charities and non-profit organisations are entitled to a VAT reduction, from 20% down to 5%, on energy used for ‘non-business’ purposes, as well as exemption from the Climate Change Levy (CCL)*, which also reduces bills by 5%.
Unfortunately, suppliers do not automatically apply these discounts where relevant, and so many UK charities end up paying significantly more, usually around 20% more, for their energy.
A recent study showed that over a third (37%) of charities did not know they could claim a reduced rate of VAT and CCL exemption, and even more (74%) were unaware that rebates for overpayments can be claimed as far back as 2009. The good news is that it’s not too late to take action.
Does my business qualify for the charity VAT discount?
All of the following businesses may be eligible for reduced VAT and CCL exemption:
- Charities (registered or unregistered)
- Churches and religious institutions
- Non-profit organisations
- Village halls, sports clubs, community centres, etc.
- Free schools and academies
- Care homes
- Businesses using less than 4,397 kWh/month of gas or 1,000 kWh/month of electricity.
How can charities obtain the rebates?
A Greener Solution will handle your rebate for you completely free of charge. We understand that charities are sometimes stretched for time and resources and we are more than happy to use our knowledge to assist.
Simply scan (or take a good quality photo) and email a recent gas and electricity bill to
firstname.lastname@example.org along with a name and contact details, and someone will be in touch with 48 hours to discuss the potential rebate.
If you have any further queries give us a call on 0191 500 9786.