Many charities are overpaying on their energy bills

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 the climate change levy that adds up to 20% of a bill.

Our research of more than 100 charities shows around a third don't know about it and believe they may be overpaying.

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Energy UK: Charities need to contact supplier on bills

Organisations need to tell energy suppliers they are registered as a charity so the correct tax rates can be applied, Energy UK told ITV News.

The advice comes after an investigation by ITV News showed many charities are overpaying on their energy bills.

When charities register with the Charities Commission it is vital they are told all the benefits to which they are entitled and how to apply.

It is not always obvious from the name that an organisation may be registered as a charity and suppliers can only know if they are told.

Charities should get in touch with their supplier so the appropriate tax rates can be applied. Suppliers want to help where they can and take their responsibility to their customers seriously but are unable to do so if they don’t have all the facts.

Under current HMRC rules companies cannot pay back more than four years of VAT.

– Energy UK statement

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