Many charities and non-profit organisations are unaware that they can benefit the same as any other company, if not more.
Start Energy fully negotiate the best rates for charities and non-profit organisations and also ensure they are receiving the deductions that they are entitled to. Lots fall foul to being overcharged on VAT & CCL (Climate Change Levy).
What businesses qualify for reduced VAT and CCL exemption?
- Care homes
- Free schools and academies
- Student accommodation and boarding houses
- Self-catering holiday accommodation – including caravans
- Businesses using less than 1,000 kWh/month of electricity or 4,397 kWh/month of gas.
Usual reasons for incorrect VAT
- Switching energy supplier or renewing your contract.
- Changing the name of your organisation.
- Changing legal entity – for example, schools leaving local authority control to become academies or free schools
- Estimated bills
Charities can apply for a VAT & CCL reduction or rebate by filling in the relevant form which you can download below. For help or advice with this please contact us on 01915800682 or firstname.lastname@example.org
British Gas Business, Spinneyside, Penman Way, Grove Park Leicester, LE19 1SZ
CNG, CNG House, 5 Victoria Avenue, Harrogate, HG1 1EQ
Corona Energy Ltd, Edward Hyde Building, 38 Clarendon Road Watford, WD17 1JW
EDF Energy plc, Registration Department, Southdownview Road, Worthing, BN14 8NL
E.ON, PO Box 9042, Sherwood Park, Annesley, Nottingham, NG15 5AZ
Gazprom Energy, Bauhaus, 27 Quay Street, Manchester, M3 3GY
Haven Power Limited, The Havens, Ransomes Europark, Ipswich, IP3 9SJ
Npower Direct Limited, 2 Princes Way, Solihull West Midlands, B91 3ES
Opus Customer Services, Royal Pavillion, 2 Summerhouse Rd, Northampton NN3 6BJ
ScottishPower Energy Retail Limited, SME Contact Centre, PO Box 7111, Cathcart, Glasgow G44 4GP
Scottish & Southern Energy, Grampian House, 200 Dunkeld Rd, Perth, PH1 3GH
By successfully applying for a VAT reduction, you automatically become exempt from the Climate Change Levy: currently 0.541p per kWh for electricity and 0.188p per kWh for gas.
Under the Finance Acts 1993 & 1997, charities (registered and unregistered) whose energy is used “otherwise than in the course or furtherance of a business” for at least 60% of its actual use, can receive all their power supplies at the reduced rate of 5% VAT. If your ‘non-business’ use is below 60% of total usage, that proportion of the supply can still be applied to the reduced rate. For example, if 35% of energy use is non-business, 35% can be taxed at 5% and 65% at the standard VAT rate.