Social clubs and congestion charge

Anyone heard of this

Didn't find your answer?

We have a social club as a client near the QE2 bridge in Essex, They have been told that electricity companies were charging a congestion charge levy and that they are able to claim this back. Of course the usual brokers have been on the phone offering to do it for them but they don't want to pay commission. There is supposed to be a form online to do this and it then sent to HMRC. Has anyone else heard of this?

Replies (9)

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By williams lester accountants
10th Jul 2024 17:06

I assume you are referring to the Climate Change Levy - you can read up on this here - https://www.gov.uk/guidance/exemptions-from-climate-change-levy#:~:text=...

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By 0098087
10th Jul 2024 17:23

It’s pretty vague what we got from the client but they did say congestion charge.l but what would they get back if it was the climate change levy

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Replying to 0098087:
RLI
By lionofludesch
10th Jul 2024 17:33

[chuckle]

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Replying to 0098087:
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By FactChecker
10th Jul 2024 18:01

The only sensible answer to a question that vague is an equally vague response - such as "maybe".

I'm not aware of any correlation between the congestion charge (administered by TfL) and supply/use of electricity ... so your client's comment is gibberish.

The suggestion from williams lester accountants is the most likely avenue to explore - but I'd not waste much time on this for a client who can't be bothered to 'use the right words in the right order'!

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By Tax Dragon
11th Jul 2024 11:56

0098087 wrote:

They have been told that electricity companies were charging a congestion charge levy...

Only the ones transporting electricity by truck.

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Replying to Tax Dragon:
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By Tax Dragon
11th Jul 2024 12:02

.oO Gives a whole new meaning to "electric vehicle"....

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By 0098087
11th Jul 2024 12:21

Seems it's something to do with a lower rate of VAT and climate change. Think it's not congestion charge!

'Clubs and non-profit organisations may be entitled to the 5% VAT rate on energy used for non-business purposes, as well as exemption from the Climate Change Levy (CCL), which also reduces bills by 5%. Suppliers don’t automatically apply these discounts, they usually have to be applied for.'

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By 0098087
11th Jul 2024 12:21

Seems it's something to do with a lower rate of VAT and climate change. Think it's not congestion charge!

'Clubs and non-profit organisations may be entitled to the 5% VAT rate on energy used for non-business purposes, as well as exemption from the Climate Change Levy (CCL), which also reduces bills by 5%. Suppliers don’t automatically apply these discounts, they usually have to be applied for.'

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By dul50n
11th Jul 2024 13:49

The guidance specifically refers to charities and supplies used for non-business purposes

This site claims its a scam: https://directpower.co.uk/ccl-vat-relief/

The VAT and CCL guide provided by EDF here: https://www.edfenergy.com/sme-business/help-advice/sme-vat-faq also mentions that activities involving membership subscriptions which provides members with additional benefits do not meet the HMRC criteria for non-business use

None of our social clubs are registered charities and none of them have non-business activities so we've steered clear of recommending this when they've been approached by commission seeking third parties

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