VAT Reclaim from Utility Company - Help!!
Discussion
Hi all - Happy New Year!
I was hoping for some of the usual PH collective expertise
I run a small care home and, up until now, we've been paying our energy bills with 20% VAT and Climate Change Levy being added
We're not VAT registered due to the nature of the business and the fees being exempt, so we can't claim anything back.
However, our accountant recently advised us that, as a care business, we can pay VAT at the residential rate of 5% and be exempt from the levy. We've been paying the full rates for about 3 years!
As such, we filled in VAT declaration forms and sent them off to the Utility Company, with the dates from which we started the business (mid 2010). They've responded by saying that they are only willing to go back to the previous April 2012...so we'll miss out on thousands of pounds in tax that could be reclaimed.
We also sent claim forms into another utility company who we were with prior to this supplier, and they've confirmed that they can go back 4 years and make reclaims from HMRC on our behalf.
My question, as I'm sure you've guessed, is are they obliged to calculate and refund the VAT and climate levy, despite the fact that we didn't tell them from the off, and I guess we should have? Alternatively, will HMRC be interested if we contact them and give them the scenario? Or are we solely reliant on the goodwill/help of Utility company? And if they choose not to help, we're stuffed??
Any help would be much appreciated.
Many thanks,
J.
I was hoping for some of the usual PH collective expertise
I run a small care home and, up until now, we've been paying our energy bills with 20% VAT and Climate Change Levy being added
We're not VAT registered due to the nature of the business and the fees being exempt, so we can't claim anything back.
However, our accountant recently advised us that, as a care business, we can pay VAT at the residential rate of 5% and be exempt from the levy. We've been paying the full rates for about 3 years!
As such, we filled in VAT declaration forms and sent them off to the Utility Company, with the dates from which we started the business (mid 2010). They've responded by saying that they are only willing to go back to the previous April 2012...so we'll miss out on thousands of pounds in tax that could be reclaimed.
We also sent claim forms into another utility company who we were with prior to this supplier, and they've confirmed that they can go back 4 years and make reclaims from HMRC on our behalf.
My question, as I'm sure you've guessed, is are they obliged to calculate and refund the VAT and climate levy, despite the fact that we didn't tell them from the off, and I guess we should have? Alternatively, will HMRC be interested if we contact them and give them the scenario? Or are we solely reliant on the goodwill/help of Utility company? And if they choose not to help, we're stuffed??
Any help would be much appreciated.
Many thanks,
J.
If the Utility company owe yo, let's say 10,000 quid in VAT, they pay 10,000 quid less to the VAT man in their next payment.
It won't cost them anything, if indeed it is the Utility company that refund you; for that you will need specialist advice.
VAT advice is always best left to a qualified advisor as, to my exasperation, every time a different VAT expert or accountant comments on VAT regulations their opinion differs.
It won't cost them anything, if indeed it is the Utility company that refund you; for that you will need specialist advice.
VAT advice is always best left to a qualified advisor as, to my exasperation, every time a different VAT expert or accountant comments on VAT regulations their opinion differs.
I'm not 100% sure on the answer (even though I work for one of the big 6 - just not in this area)
The problem is that you have had effectively a non-domestic account. The back billing rules for that are 5/6 years (depending on Scots or English Law)
So yes, arguably they should be able to go back for that amount of time....
However you're saying that you want to be dealt with as a domestic account. The back billing for that is only 1 year.
I can see the confusion. You want dealt with as a domestic customer but with the non-domestic back billing rule....should be resolvable though -
Best bet, escalate through the suppliers complaint channel or contact Citizens Advice. I'd be surprised if you don't get a resolution within a month!
The problem is that you have had effectively a non-domestic account. The back billing rules for that are 5/6 years (depending on Scots or English Law)
So yes, arguably they should be able to go back for that amount of time....
However you're saying that you want to be dealt with as a domestic account. The back billing for that is only 1 year.
I can see the confusion. You want dealt with as a domestic customer but with the non-domestic back billing rule....should be resolvable though -
Best bet, escalate through the suppliers complaint channel or contact Citizens Advice. I'd be surprised if you don't get a resolution within a month!
I've just asked the font of all knowledge on things like this who happens to be on the other end of the sofa.
CCL the supplier will rebate this to last April, before that you can go back 3 years from HMRC Portsmouth using a fairly simple reclaim form available from their website (google CCL reclaim HMRC) apparently very easy to fill out and they'll send you a cheque within days.
VAT she used the technical term of "that's b
ks" they can go back three years easily at the supplier, they collected it and shouldn't have, easy to reclaim and they'll have to pay it, just kick up a stink.
Oh and she does exactly this for a living as a utilities consultant with blue chip companies, her job is to find over charges and get money back, but they normally charge 50/50 on what they get back that the clients didn't even know about.
CCL the supplier will rebate this to last April, before that you can go back 3 years from HMRC Portsmouth using a fairly simple reclaim form available from their website (google CCL reclaim HMRC) apparently very easy to fill out and they'll send you a cheque within days.
VAT she used the technical term of "that's b
ks" they can go back three years easily at the supplier, they collected it and shouldn't have, easy to reclaim and they'll have to pay it, just kick up a stink.Oh and she does exactly this for a living as a utilities consultant with blue chip companies, her job is to find over charges and get money back, but they normally charge 50/50 on what they get back that the clients didn't even know about.
mel said:
I've just asked the font of all knowledge on things like this who happens to be on the other end of the sofa.
CCL the supplier will rebate this to last April, before that you can go back 3 years from HMRC Portsmouth using a fairly simple reclaim form available from their website (google CCL reclaim HMRC) apparently very easy to fill out and they'll send you a cheque within days.
VAT she used the technical term of "that's bks" they can go back three years easily at the supplier, they collected it and shouldn't have, easy to reclaim and they'll have to pay it, just kick up a stink.
Oh and she does exactly this for a living as a utilities consultant with blue chip companies, her job is to find over charges and get money back, but they normally charge 50/50 on what they get back that the clients didn't even know about.
Awesome - thanks Mel, and the other people who responded...much appreciated CCL the supplier will rebate this to last April, before that you can go back 3 years from HMRC Portsmouth using a fairly simple reclaim form available from their website (google CCL reclaim HMRC) apparently very easy to fill out and they'll send you a cheque within days.
VAT she used the technical term of "that's b
ks" they can go back three years easily at the supplier, they collected it and shouldn't have, easy to reclaim and they'll have to pay it, just kick up a stink.Oh and she does exactly this for a living as a utilities consultant with blue chip companies, her job is to find over charges and get money back, but they normally charge 50/50 on what they get back that the clients didn't even know about.
Mel - If I may, can I apply directly to HMRC Portsmouth or does it have to be the Utility company that does it?
mel said:
The supplier will repay you what has been paid in CLC already during this tax year. Going back further than that you apply directly to HMRC for the rebate using the forms online. (Apparently, that is according to the voice from the kitchen)
Ok that's great, thanks...we'll give it a go Thanks again (to you and the kitchen)!!
Hi I deal with this specific question almost daily.
You're entitled to CCL exemption all the way back to november 2007 in theory , however utility companies tend to only refund a max four years in my experience. I agree with previous advice to kick up a stink if they don't refund you. Some suppliers are better than others, Eon in particular seem very co operative (I don't work for Eon )
Sorry to revive an old thread and I hope you got this sorted out to your satisfaction - however you should note that you also get exemption on your natural gas and bulk tank LPG supplies if that also applies
Do it yourself . Simply send the PP11 VAT declaration off to the relevant suppliers
Also you should send a PP10 form to HMRC
One form per meter and per supplier
Remember to chase them up if they do not respond within five working days ( they are legally obliged to start processing your claim within that time frame )
Sorry if this isn't the most riveting reading, but hope the detail helps
You're entitled to CCL exemption all the way back to november 2007 in theory , however utility companies tend to only refund a max four years in my experience. I agree with previous advice to kick up a stink if they don't refund you. Some suppliers are better than others, Eon in particular seem very co operative (I don't work for Eon )
Sorry to revive an old thread and I hope you got this sorted out to your satisfaction - however you should note that you also get exemption on your natural gas and bulk tank LPG supplies if that also applies
Do it yourself . Simply send the PP11 VAT declaration off to the relevant suppliers
Also you should send a PP10 form to HMRC
One form per meter and per supplier
Remember to chase them up if they do not respond within five working days ( they are legally obliged to start processing your claim within that time frame )
Sorry if this isn't the most riveting reading, but hope the detail helps
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