Clubs and non-profit organisations may qualify for a reduced rate of VAT and CCL. However, there is a specific criterion to qualify for this.

The organisations that can look to claim a percentage of their CCL back, if they meet the criteria below:

• Non-profit organisations
• Sports clubs, village halls, churches/religious venues, etc
• Businesses using below the de minimis
• Domestic usage
• Registered charities

However, this can only be claimed on energy that hasn’t been used for “business” use.

What classifies as “business” use?

Any charity/non-profit organisation that takes part in any of the below activities:

• Sale of goods, services as well as food and drink.
• Hiring of charity run buildings
• Provision of membership by clubs, or similar bodies.

Please note that it is still classed as a business activity if charges are only set to recover the costs incurred, it is not necessary to make a profit to be classed as a business activity.

HMRC have confirmed that the following types of organisations would not qualify for the reduced rate of VAT on their energy supplies:

• GP surgeries, dental surgeries and other NHS health providers (as they are not registered charities)
• Golf clubs
• Other sports clubs charging for use of facilities (e.g., bowls, squash, tennis) *
• Independent fee-paying schools
• Leisure Centres regularly charging for use of facilities
• Museums and other types of buildings charging entrance fees
• Non-profit organisations regularly charging for use of a premises
• Charity shops

* Community Amateur Sports Clubs (CASC) are permitted to register with HMRC to benefit from a range of tax reliefs.  Where there are charges to members for the use of facilities, even as a registered CASC, there is no relief available for VAT purposes (further information can be found in the HMRC link https://www.gov.uk/government/publications/community-amateur-sports-clubs-detailed-guidance-notes/community-amateur-sports-clubs-detailed-guidance-notes ).

Partial reductions 

If an organisation uses more than 60% for non-business use, then they can claim 100% of the CCL back over the last 4 years and are entitled to a full reduction going forward.

If an organisation uses less that 60% for non-business use, then they can claim that percentage reduction back and can have it applied going forward.

If an organisation believes that there should be a reduction in CCL, they need to complete a PP10 document with HMRC.

It is imperative that all the information provided is correct, as if incorrect information is provided it could lead to penalties further down the line.

The PP10 is the supporting analysis that will then be used to get a PP11 form completed, and thus a PP11 certificate will be created to submit to your energy supplier.

Domestic use

Sites that use the energy for domestic use are also available for a reduction in CCL and VAT.

The below are some examples of these:

• Landlord supplies
• Holiday park accommodation
• Self-catering accommodation
• Residential sites

Where a non-profit organisation has these form of properties, they are able to claim a rebate and future reduction on CCL and VAT.

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