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energy supplies - are you being overcharged?

By Kevin Russell | 19 March 2012


A recent survey calculated that charities paid £78m of unnecessary tax on their energy bills in 2011. A staggering 46% of charities surveyed didn’t realise they only have to pay 5% VAT on their energy costs.


Energy suppliers do not apply the 5% rate automatically. Charities must send them a certificate to claim this. It is, however, possible to make a retrospective claim for up to 4 years for VAT overpaid.


Our Briefing Paper ‘VAT for Churches – a detailed guide’ covers the rules for energy supplies in more detail as well as setting out further potential cost savings for churches. To obtain your copy, priced £19.50, visit

Posted by Kevin Russell

Our Legal Eagle guru and Stewardship's Technical Director, Kevin constantly has his finger on the pulse of all things tax and charity law-related. His briefing papers for charities, churches and individuals are an invaluable resource on everything from VAT to Gift Aid. 


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