By Adam Novakovic Energy Markets Consultant Energy costs remain one of the largest overheads for British charities and housing providers. Following the government’s legislation introducing a temporary zero rate of VAT on qualifying domestic and non-business electricity supplies in Britain, many organisations have a major opportunity to cut their energy costs. If your charity or housing association is still paying the standard 20% business VAT rate on electricity bills, you could be missing out on an immediate zero-rating as well as substantial retrospective refunds. The VAT Rate Change Standard commercial energy comes with a 20% VAT rate, with organisations that use less than 1,000KWh/month paying a reduced rate of 5%. Under revised VAT rules, supplies that meet the qualifying 5% threshold are now cut to 0% VAT across England, Scotland, and Wales. These changes are for electricity only – gas retains the 5% VAT rate – and should be automatically applied by suppliers. However, this is only the case for accounts where the correct VAT rate is already applied to the account. In order for this to happen, a VAT declaration certificate needs to be sent to the supplier.
October Review By Adam Novakovic Energy Markets Consultant October was a month that saw far more tricks than treats in relation to energy prices. While there were times when the hope of falling prices seemed as though it was on the verge of becoming reality, those hopes never materialised and prices continued to ascend.
