Home warm discount taxed

dlaird56

I recieved my bill from British gas who had billed me twice for same thing but the home warm discount was also taxed leaving £142 .86 before it got to final total where more deductions were made is this allowed 

sammyjammy

What do you mean it was taxed?  You only pay VAT on your energy costs which will be on the costs pre WHD.

Seasalt3

No tax is payable on warm home discount

Robbie64

It's down to the way some energy suppliers show the WHD on a bill. I'm with EDF and they now simply list the WHD as a £150 credit (under the new Kraken billing system). However, on the old billing system the WHD was shown on my statement when it was paid last year as:

Warm Home Discount credit £142.86

then further down the bill:

VAT on Warm Home Discount 5% of £142.86 --- £7.14 Credit

meaning that the credit added up to £150

It's a convoluted way of showing the credit as £150. Somewhere on your bill the same £7.14 credit should / may appear.

Muttleythefrog

These bills are notoriously confusing and difficult to understand.... as above... check the tax taken off isn't added back in.