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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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HMRC on how charities can get an energy bill refund

An ITV News investigation has shown that many charities are being over charged on their electricity bills.

We asked HMRC how charities can get a refund and whether they accept some charities are missing out on reduced energy bills. Here are their responses:

Does HMRC accept that many charities which are entitled to reduced VAT are missing out?

No, HMRC believes that the vast majority who are entitled to receive the reduced rate of VAT and CCL exemption. With millions of supplies made by fuel and power companies, it is not possible for HMRC to determine that every supply is taxed correctly. Ultimately though, the responsibility lies with the individual charity.

– HMRC statement

How does a charity get a refund for overcharged VAT?

If a charity believes it has been charged the wrong rate of VAT on a supply of fuel and power, or that it has been charged CCL, it should contact its supplier and request a refund.

– HMRC statement

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