IEC has helped a residential care provider to save thousands of pounds in VAT charges.  

The Britannia Care Group was recently awarded a £5,000 rebate, and will continue to pay less on future energy bills.

A review of Britannia Care Group’s energy consumption by IEC showed the company had wrongly been paying 17.5% VAT on gas and electricity bills.  This triggered a further charge under the Climate Change Levy Agreement, a tax based on energy consumption which incurs additional cost and administration.

IEC’s legislation expert Mike Jones says that care homes are treated differently from a VAT perspective and able to pay VAT on energy bills at the domestic rate of 5%.

“Paying VAT at the reduced rate means they fall below the threshold for paying the Climate Change Levy tax, therefore providing a reduction in their utility costs.” explained Mike.

Britannia Care Group, which runs three residential care homes and a nursing home, called in IEC to help with energy purchasing and invoice validation.  

Paul Quinn, Director at BCG said: “We are delighted to be working with IEC – their knowledge of energy charges has already saved us thousands of pounds.”