Don’t get caught out…
It seems there is a new scam circulating at present. Clients have reported being cold called and told that because they operate a low profit making or non-profit making business, they qualify for CCL relief. This is not true, do not engage with such scam callers. The red flag is instantly raised because these pushy cold callers will not put this sales pitch scam in writing, only discuss it over the phone, a tactic which makes it hard to assign blame when things go wrong!
CCL and VAT relief cannot be claimed because you operate a low or non-profit making business. Don’t just take our word for it. You can contact the HMRC for clarification on your ability to claim CCL or VAT relief by calling 0300 200 3700. Plus, your supplier will have their own VAT compliance department, so speak with them if you need further advice.
Please note, HMRC has a department which investigates services intentionally miss-leading companies/individuals about tax obligations. If you suspect you are a victim of miss-information, Direct Power recommends you send details to firstname.lastname@example.org. Together we can do our part to ensure folks don’t get caught out and the pushy miss-sellers don’t line their pockets with ill-gotten gains!
A full and current list of the activities/consumers that have legitimate grounds to claim for CCL and VAT relief can be found here.
To put it simply, If you are a business, regardless of if you make a profit or not, you can only claim CCL and VAT relief based upon the reasons listed on the HMRC site.
The most commonly used grounds for CCL and VAT relief include: domestic use or use by a charity for its non-business activities, consumers who fall below the de-minimis level.
Do not confuse a lack of profit with running a Not For Profit Charity, two very different things.
Suppliers caution customer about trying to claim for CCL or VAT relief for inappropriate reasons as you may face trouble with the tax authorities. There have been cases where brokers incorrectly push customers to claim inappropriate CCL or VAT relief, but it is the customer who gets in trouble and deals with consequences with the tax authorities, not the pushy broker.
If you believe you qualify for CCL or VAT relief Direct Power can assist in the preparation of VAT relief and PP10/PP11 forms for the relief to be applied to your energy accounts.
Further advice for Charities and VAT/CCL relief:
It is worth while noting that charities don’t automatically enjoy CCL and VAT relief for all their consumption, only supplies for non-business activities are excluded from the main rates of CCL and VAT. Charities that carry out business activities, such as renting out space, or selling donated goods must pay CCL and VAT on consumption relating to business activities. This is true even if no or low profits are made. If the energy consumption relates to a business activity it does not qualify for the charity CCL or VAT relief. If a charity is carrying out both business and non-business activities on the same premises then it may apportion its consumption per account between excluded and taxable use and advise its energy supplier accordingly. See How VAT affects charities (VAT Notice 701/1). In order to claim this relief, a VAT certificate must be provided to the supplier. See Fuel and power (VAT Notice 701/19). Direct Power assists many charities each year with their CCL ad VAT relief.
Chances are that if something sounds too good to be true, it is!
Remember this simple rule and do not engage with cold callers, they are serving their own agenda. It is far better you call someone for assistance with CCL and VAT relief, the HMRC, your supplier, or Direct Power. That way you have already vetted them before your call and are seeking advice on your own terms. Direct Power assists multiple charities and businesses each year with their CCL ad VAT relief. If you believe you qualify for CCL and VAT relief get in touch for assistance claiming your relief.