Only Pay 5% VAT On Utilities For Care Homes & Charities

Pay Less Tax

Pay Less Tax

Did you know not all organisations are liable to pay the standard 20% VAT rate & the Climate Change Levy on their supply of electricity and gas? There are quite a number of businesses who provide “residential accommodation” that are eligible for the reduced 5% VAT rate according to HMRC. These include:-

  • Caravan parks.
  • Children’s Homes.
  • Homes providing care for elderly, disabled, dependency or mental patients.
  • Hospices.
  • Self catering holiday accommodation.

Additionally, all not-for-profit charities are entitled to pay the reduced 5% VAT rate.

But not many utility suppliers will tell you how to claim this reduction, and this is where we can help you to save those precious pennies. So give us a call at EnergyPriceSaver.com (01524 259 200) and we will do all the hard work for you. Thanks, Jon

EnergyPriceSaver.com – Fresh Juice At A Better Price.

Comments 4

    1. Post
      Author

      Hi Jordan,
      Sorry about the slow response. Your comment got lost in all the spam which we receive. Sorry!
      All care homes in the UK are entitled to the reduced VAT rate for your gas and electric.
      The following businesses should receive the reduced VAT rate:-

      – Caravan parks.
      – Children’s Homes.
      – Homes providing care for elderly, disabled, dependency or mental patients.
      – Hospices.
      – Self catering holiday accommodation.
      – Not-for-profit charities.

      Please give us a call on 01524 259 200 and we can help you further,
      Jon Mullen
      The Energy Evangelist
      W: http://www.EnergyPriceSaver.com
      M: EnergyEvangelist@EnergyPriceSaver.com
      T: 01524 259 200

  1. Good Morning,

    I represent Your Health Ltd who owns and runs 10 care homes and a domicilary care company.
    The Head office runs the care homes and also houses the office for the domicilary care company.
    Can the head Office claim 5% vat on their energy bills, or do we have to pay 20%

    best wishes
    Brian

    1. Post
      Author

      Hi Brian,
      Thanks for your query about VAT rates, and I can understand why you have this question because the answer is a bit messy unfortunately.
      1) If the head office, and/or the domiciliary care office are on a separate electric / gas meter they will have to pay 20%.
      2) If the head office(s) are on the same meter as a care home then you need to know and prove how much energy is used by the office(s). If at least 60% of the energy is used for “residential or care home” usage then the full amount will be allowed to pay the 5% VAT rate.
      3) If the usage rate of the care/residential home (as above – 2) is less than 60%, then you can claim the percentage usage for the care home at the 5% VAT rate, and the usage balance at 20%.

      If you are interested in reducing your energy usage across your business (water, gas, electric, waste, sustainability etc) please give me a call or arrange a short meeting HERE.

      Please confirm all of the above is correct with your accountant as I am not an accountant and tax laws change very rapidly!

      Many Thanks,
      Jon Mullen
      Energy Evangelist
      Energy Price Saver Limited

      T: 07517 459 224 / 01524 259 200
      E: Jon.Mullen@EnergyPriceSaver.com
      L: http://www.linkedin.com/in/jonmullenlancaster-energyevangelist

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