British Gas

Kenny1066

Hi All
I'm after some advice please

I was transferred to British Gas when when my last energy provider ceased trading last year.  I had a large credit balance when I left my old company and this was transferred to British Gas when I moved to them.

My issue is British Gas say that I have to pay VAT on the credit balance transfer which I don't feel is correct.  My view is the credit balance should form the starting figure for my new account and then VAT only applied to subsequent bills based on the energy I use not on my amount of credit.

So £1000 credit transferred from my old supplier to Britsh Gas which was my closing statement with Peoples Energy
But British Gas have charge 5% Vat on the money they received and have reduced my starting balance to £950  having removed £50 for VAT.