An investigation by ITV News has discovered that many charities are being charged too much on their energy bills.
Charities are entitled to a discount on VAT and with the climate change levy that adds up to around 20% off on an energy bill.
Research by ITV News shows that around a third of more than 100 charities did not know about the reduction and believe they may be overpaying on their energy bill.
Here, ITV News answers whether you are entitled to a reduction in VAT on your energy bill, what the common reasons are for an incorrect amount of VAT being charged and how to apply for a reduction and rebate.
Who qualifies for a discount on VAT on energy bills?
- Free schools and academies
- Care homes
- Student accommodation and boarding houses
- Self-catering holiday accommodation
- Businesses using less than 1,000 kWh/month of electricity or 4,397 kWh/month of gas
What are the usual reasons for incorrect VAT?
- Renewing your contract with an energy supplier
- Switching energy supplier
- Changing the name of the organisation
How can I apply for an energy bill reduction or rebate?
If a charity wants to make a claim for an energy bill reduction or rebate, it needs to complete a VAT Declaration Form.
Moneysaving website Make It Cheaper has compiled a list of forms from each supplier which the charity would need to fill out in order to get a rebate or reduction.
Go to the website for the address you need to send the form to.
For more information go to www.makeitcheaper.com or ring one of their energy advisers on 0800 140 4692, Monday to Friday from 9am to 5.30pm.