Charity Funded Playgroup paying excessive bills needs out of contract ..... HELP

Robin9

playtimes - does your bill also show a charge for CCL - Climate Change Levy ?  That will also reduce to zero once you pay 5% VAT.

Playtimes

Hi All ......... Thanks for all your comments and advice ....... due to the limited time i have to help with this, i have enlisted the help of other committee members who have a little more knowledge and can ask the right questions ........ it is looking like we should not actually be set up as a business as we are not in a commercial property ..... and also we are a charity .... 
I will come back and let you know what we've done and how we get on shortly .....

Robin9

You sound a little confused. 
What property are you in if not a commercial one -  a house ? but if so this should classified as a business not domestic

macman

As above, unless your charity is being run from a property that is primarily a domestic house, then business tariff rates will apply. However, if a registered charity, you should pay a reduced rate of 5% VAT, and you are exempt from 5% CCL (Climate Change Levy). So, collectively, that is a 20% saving.
I understand that you can apply for a VAT rebate if overcharged going back 4 years.
How did you come to be locked into a contract until 2022?

Robin9

macman said:

How did you come to be locked into a contract until 2022?

As above I have a business contract and am coming to the end of a 2 year fix - it gave me security of costs for a couple of years. Whether that will prove to be the right decision only time will tell.
From UK power website :

Can charity VAT claims be backdated?

Yes, absolutely. You can claim up to four years of back payment. You should expect a rebate from your supplier for the difference between 5% and the standard rate of VAT charged at the time of the bills. UKPower can talk you through your bill and identify whether or not you are in a position to make a claim.

How to apply for VAT exemption for charities?

Those eligible for exemptions or rebates will need to fill out a VAT Declaration form, which can be obtained from suppliers, or downloaded online – you can find out more at GOV.UK. Upon receiving a VAT Declaration form, suppliers usually take around 14 days to review the application and return with a decision.